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How long does it take for a collection agency to sue you to repay a debt?
Wiki User
∙ 13y ago
More to the point, the time varies. First, they have to contact you, usually by phone. Then, they have five days to send you a letter which will tell you that you owe someone some money and to send it to the address they've provided.
However, also in that will be a notification that if you dispute, or ask for validation of the debt, and/or the name and address of the original creditor, all collection efforts are suspended. You have 30 days to send a letter to them. Once they receive it, they either have to send you the information or leave you alone.
If they do send you PROPER validation, then they can sue. The time this will take varies from CA to CA. For example, if a debtor is sued by Hanna and Associates, out of GA, he can expect to be sued within three months or so. Others may not get it going for many months, even a year is not that unusual.
The important thing is to respond to their summons. Through discovery, make sure to demand every iota of proof. Much of their "proof" will be hearsay and mostly incomplete, and sometimes bogus. It is up to the debtor to challenge and question each step of the way.
The CA is counting on most people, as much as 90%, not to show up at the court. Don't be one of those people. Show up, make them know they're in for a fight, and don't be suprized if the CA will dismiss his efforts on the spot; or at worst, ask for a continuance, since it is a sure bet the CA's attorney will be ill-prepared. When that happens, it becomes that more costly for the CA to continue chasing windmills.
Becoming educated to the process is a winning strategy when dealing with collection agencies. Check out some very good research sources like debtorboard.com and creditinfocenter.com.
Wiki User
∙ 13y ago
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Can a debt collection company issue a summons for unpaid unsecured debt?
Yes, once a debt collection agency buys your debt from the original creditor they are legally entitled to all of your debt. Therefore, they can take you to court for any unpaid debts, so long as it is the debt they bought from the original creditor and only that debt.
If you have a 2300 dollar hospital bill and you make 20 dollar monthly payments are they allowed to send the matter to a collection agency?
No, as long as you have contacted the hospital and they are aware that you are paying a monthly amount and have agreed to accept that amount, they can not send you to collections. Most hospitals also have financial hardship programs and charity options. You should contact them to see if you qualify. I work for University Of Maryland and do ER billing. If you have a debt and the collecting party has proof of this debt, they have the option of selling your debt to a collection agency unless otherwise agreed upon through some legal channel.
Does transferring a debt to another collection agency exend the time it appears on credit report?
Transferring a debt to another collection agency does not extend the time it appears on your credit report. The time a debt stays on your credit report is determined by the date of the original delinquency, and this date doesn't change when a debt is sold or transferred to a different collection agency. Here's a clearer picture: Seven-Year Rule: Generally, a debt can stay on your credit report for up to seven years from the date of the first missed payment that led to the account's delinquency. This is a guideline set by the Fair Credit Reporting Act (FCRA). Date of Original Delinquency: This is the date from which the seven-year period is calculated. Even if the debt is sold or transferred to another collection agency, this original delinquency date remains the same and doesn't reset. Collection Accounts: If a debt goes into collections, the seven-year period applies to the collection account as well. The collection account will fall off your credit report seven years from the date of your first missed payment on the original account. Multiple Collection Agencies: If the debt is passed between multiple collection agencies, it might appear multiple times on your credit report. However, it should still be removed seven years from the original delinquency date, regardless of how many times it's been sold. Credit Report Accuracy: It's important to regularly review your credit reports for accuracy. If a debt is re-aged (incorrectly updating the date of delinquency) or if a collection account stays on your report longer than seven years, you have the right to dispute it with the credit bureaus. Remember, while transferring the debt doesn’t extend the time it stays on your credit report, it can restart the statute of limitations for how long the debt is legally enforceable, which varies by state. This is a different timeframe that determines how long a creditor or collector can take legal action to collect the debt. It's important to distinguish between the two. If you’re interested in more information on managing debt and understanding credit reports, my video “7 Proven Strategies to Eliminate Financial Anxiety” might be helpful. It covers strategies for tackling debt and improving your financial situation, which can have a positive impact on your credit health.
How long is it before debt collection will be sent if someone does not pay off their credit card?
The length of time a debt collection is sent really depends on the credit card company. If they have attempted to make contact on various occasions with no resolve then the companies will often send out a debt collection notification, and also the companies will notify the credit bureaus.
How long does a business have before turning the debt over to a collections agency?
The sooner you turn an unpaid debt over to collections, the better the chance of recovery. I would not suggest any debt over 3 years old. If it is a credit reporting agency, the debt will remain on the debtors credit report 7 years from the dilinqent date.
How long can a collection agency come after you for 70 dollars?
Until you pay your debt
If you already paid a debt can a collection agency legally continue to try to collect the debt?
Not as long as you can prove you paid it.
How long does a collection agency have to validate debt?
30 days from the time the debtor requested written confirmation.
How soon can a vendor send a client's account to a collection agency?
There is no law that restriction how long a creditor or business must hold a bad debt before forwarding it to a debt collections agency.
Can a debt collection company issue a summons for unpaid unsecured debt?
Yes, once a debt collection agency buys your debt from the original creditor they are legally entitled to all of your debt. Therefore, they can take you to court for any unpaid debts, so long as it is the debt they bought from the original creditor and only that debt.
How long before a cable company can submit your balance to debt collection agency?
things like this usually are after a couple months of non payment
Is there a maximun on credit card debt for the statute of limitations to apply?
The statute of limitations is how long a collection agency can collect and sue or the debt. It makes no difference how much or how little the amount is. The only limitations are time.
How long does a third party collection agency have to collect on a debt after the debt is charged off by the original creditor?
There is no time limit placed on their collection efforts to collect a debt. However, there is a SOL for legal recourse and for how long it can report on your credit reports. Reporting time is 7 years and so far as the SOL for legal recourse you would have to check your state laws to see how long.
What is the statute of limitations for debt collection in Michigan?
There is no statute of limitations for debt collection in Michigan. You can continue to collect as long as the debt is owed. The debt can be sold as well.
How long does it take for a credit card company to charge off debt to a debt collection agency?
One year. Then, after it goes to a collection agency.. it is like a bunch of frenzied sharks..who will harrass you for decades! One place I would like to send you. I found out a couple of things in an ebook. It is "Beat the Collector" by Jack Tories. I made a few calls to verify the information and found it to be correct. I am now going to give the collection agency a dose of their own medicine!
How long does it take for a debt collection agency to collect a debt?
A debt collector can attempt to collect on a debt for as long as she wants. She cannot, however, bring legal action against you once the statute of limitations has expired. At this point, she may still attempt to contact you by phone and written correspondence, but that is legally the extent of the actions.
Do collection agencies offer discounts on debts?
That might be a bit optimistic, but possible. A collection agency will sometimes 'buy' debts from other companies, companies who consider the debt uncollectable. Maybe they just don't have the people or resources to pursue it, etc. So rather than writing the debt off completely, it is sold at a percentage of the total value, to a collection agency. This collection agency now pursues the debt. They may consider accepting a smaller payment from the debtor, as long as they are making a profit on the whole. However you will tend to find that the agency is most definately after a full payment, plus interest. If the agency is acting as a first or third party agent (pursuing the debt under the instruction of the owed company) then they may not be able to accept anything less because of their obligation to the company they are acting as an agent of.
