Can a Collection Agency Sue for a Debt

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Sunday, June 14th, 2009 Subscribe To Our Feed

Can a collection agency sue for a debt is a question that many people are asking, as it is becoming more difficult for people to keep their bills paid. Poor credit listings and collections activity were the measures that were used in the past to collect on debts. With the advent of financial problems being more normal, many lenders are going to more extreme measures to try to get the money owed them.

I know a person that was recently sued for a $2000 owed amount on a major credit card. Having worked in both the credit card and collection industry, this is not something that would have been done in an up economy. Usually, the accounts are bought by a third party collection agency for pennies on the dollar and they, in turn, would numerous collection calls for the money.

If you are summoned to court over debt, the lender will most likely take a judgment against you and this will stay on your credit record for 10 years. But even worse, the lender can and most likely will garnish your wages. This means your employer will be aware of the problem and some employers do not look kindly on this at all and I have even heard of some companies that will not do it at all.

These are very compelling reasons to look for an alternative method for dealing with your credit card debt. If you are starting feel the pressure, delaying action will only make it worse. There are things you can do, but you can’t use them if you don’t know what they are. Your first step is to find out what programs your lenders have that can help you. Especially now, many lenders have hardship programs that can help you get caught up and avoid the consequences of not making your payments.

However, some individuals require outside help because they are either several months behind or they have overwhelming. For these individuals, a debt elimination program is required. So, can a collection agency sue for a debt–yes they can.

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