What happens when a debt is sent to collections is not that uncommon, though it can often be viewed by consumers as an extremely unpleasant and frightening prospect. In the event that a debt collection agency receives a formal written demand from a consumer, it is then up to the collections department to respond to the request and either accept or deny the request. Once the collections department responds, they will then begin calling the debtor to attempt to get them to pay up, usually by either phone or in writing. If the collector believes that there is a valid reason for the call, they may even threaten to have the individual behind the debt forced to go to court, which would be a frightening prospect indeed for anyone.
If you wish to learn more about this, visit more info here.
Many consumers are aware that if a collector plans to follow up on an unpaid debt by sending it to collections, that the debt cannot be paid in full at that point, but this does not stop the collectors from attempting to contact the debtor. The reality is that all debts can be collected, whether you have actually received a copy of the bill or not. Even debts that the consumer has not paid yet can be pursued, as it is possible to sue an individual for debts that are still outstanding after the grace period has expired.
What happens when a debt is sent to collections has to do with the law that exists in most states. The Fair Debt Collection Practices Act, or the FDCPA, makes it illegal for any collector to threaten to report the delinquent account to other companies or to use any means to collect a debt that is past due. Some states have even created specific laws regarding the conduct of debt collections, but even in those states, the protections are not always well enforced. Some states have laws that only allow collectors to pursue a debt for a few days after the initial contact, while other states limit the time that collections can last. It is always important to contact your state attorney general’s office for more information on what your state’s laws say when it comes to what happens when a debt is sent to collections.