Can a Collection Agency Sue for a Debt

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Wednesday, June 10th, 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. Years ago, poor credit record listings and collection activity were the most extreme measrures a lender would go to. 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 have a friend that was recently sued for a $1500 outstanding balance 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. Many times, the accounts would have been sold to an outside collection agency for less than the face value and they, in turn, would have harassed you to death 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. You do have alternatives, but you have to know what is there before you can use it. 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 people need third-party assistance because they are either numerous months past due or they have overwhelming. A debt reduction program is necessary for these individuals. So, can a collection agency sue for a debt–yes they can.

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