What to Do About Collection Agency Threats

What to Do About Threats

How you respond to a collection agency's threats should depend on what they're threatening to do. Debt collectors aren't allowed to threaten anything they can't legally do. A debt collector can't threaten to repossess your house, unless they actually hold a mortgage on your house. Debt collectors certainly can't threaten any type of violence against you. If they do threaten you need to make sure to document any and all threats.

You should keep a record of all your interactions with a debt collector and document any threats they make. You should have a pen and paper near your phone and be ready to take notes when you answer the call. If you're not in a position that you can take notes about the phone call, it's probably best not to answer. Due to state and federal laws and statutes governing oral contracts, its best to document everything - If you decide to see an attorney they can tell you everything you need to know about contracts and the concept of promissory estoppel when dealing with oral contracts.

When to See an Attorney

You should seek an attorney if you get served with a lawsuit summons. You should not ignore a lawsuit summons. If you do, the debt collector could get a default judgment against you because you weren't there to defend yourself. Once the collector has a judgment against you, they could get the judge to allow them to garnish your wages or levy your bank account. You should have an attorney show up to defend you.

There's another possible reason to seek an attorney if you're served with a lawsuit summons. Debt collectors have been known to set up elaborate fake lawsuits, with fake courtrooms, and fake judges. If you go see an attorney about the lawsuit, they can probably warn you if something seems off about the summons. You may not necessarily have to hire the lawyer to represent you in court, but it's probably wise to get legal advice about your rights and the steps you should take next.

Stop Debt Collector Contact

At any time, you can stop a third-party debt collector from contacting you by sending them a cease and desist letter. You should tell them that you no longer wish to be contacted about that debt. The collector can send you one more letter after that to let you know what they plan to do next. Be aware that you might be contacted again about that same debt if a new debt collector gets assigned to it. The cease and desist letter is for a specific collection agency, not a specific debt.