Anonymous
Anonymous asked in Business & FinanceCredit · 1 decade ago

What happens when a overdue bill gets turned over to a collection agency?

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  • 1 decade ago
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    An outside collection agency purchases your debt for a percentage of the total amount. Once the agency owns it, the original company will list the debt on your credit report as "sold to collection", "referred to collection" or just "sold". The collection agency's name will now appear on your credit report as the new owner of your debt and the current amount.

    The agency will want you to pay it in full since they probably bought it for 50% of what you owed, so if they can get you to pay it in full, it's higher profit for them.

    They will call you, write you and request you pay the debt and/or attempt to set up a payment schedule with you. After a while, they may atempt a settlement with you (which will do more damage in the long run).

    Just pay the debt and get it over with.

    Source(s): BSBA Finance, certified H&R Block Level 1 2005 Personal Income Tax, studying for Certified Financial Planner's license
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  • Anonymous
    1 decade ago

    If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "debtor." If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a "debt collector." A collector may contact you in person, by mail, telephone, telegram, or fax. Usually you will get a letter asking you to pay telephones will come later after 30 or so days.

    If he/she calls you, they cannot harass you

    use threats of violence or harm;

    publish a list of consumers who refuse to pay their debts (except to a credit bureau);

    use obscene or profane language; or repeatedly use the telephone to annoy someone.

    Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not:

    falsely imply that they are attorneys or government representatives;

    falsely imply that you have committed a crime;

    falsely represent that they operate or work for a credit bureau;

    misrepresent the amount of your debt;

    indicate that papers being sent to you are legal forms when they are not; or

    indicate that papers being sent to you are not legal forms when they are.

    Debt collectors also may not state that:

    you will be arrested if you do not pay your debt;

    they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or

    actions, such as a lawsuit, will be taken against you, when such action legally may not be taken, or when they do not intend to take such action.

    Debt collectors may not:

    give false credit information about you to anyone, including a credit bureau;

    send you anything that looks like an official document from a court or government agency when it is not; or

    use a false name.

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  • 1 decade ago

    Repeated phone calls at all hours for weeks maybe months. Threatening letters and finally they may take you to court and sue you get a judgment and attach some of your assetts, bank accounts, cars, file a lien against your house etc. Best to work out a payment plan with them.

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  • 1 decade ago

    the collection agency will hound you for weeks until you pay them off. If you don't pay them off they send it to the Credit agencies as a mark against you.

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  • Anonymous
    1 decade ago

    They put it on your credit report which is not good. Try and get it resolved with the original company before it does get sent to collections.

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  • Anonymous
    1 decade ago

    Well for starters that is a great way to screw up your credit but once they turn you over to them the you will recieve a call probley every day until you pay them

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