If your reason is valid, the collector can voluntarily stop collecting the debt. If you act quickly, you can request in writing for the collection agency to validate the debt and the collector must stop collection activities in the meantime. As soon as a default judgment has been made, the collection agency can garnish your salary, confiscate personal property and have money withdrawn from your bank account. Depending on your state, you may resume the statute of limitations if you make a partial payment on a debt or otherwise recognize that you owe a debt that you did not pay.
Can I simply hang up with a collection agency?
By following these steps, you should be able to negotiate your debt in an amount that works best for you. Ignoring or avoiding the collection agency may result in the collection agency using other methods to collect the debt, including filing a lawsuit against you. You can also ask the collection agency in writing to stop contacting you, which will interrupt communication. If you have overdue debts and don’t want to pay the full amount, you may be able to significantly reduce that debt.
What happens if I ignore a collection agency?
The automatically removed money is used to pay your bill in installments until your bill is paid in full. These add-ons can increase the total amount you owe several times, making it even more difficult to pay off the debt. That means that unpaid credit card debt, medical debts, and other consumer debts can still haunt you long after active collection efforts have ended.
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Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.