We’ve all heard stories of people being hounded several times a day, had their friends and relatives contacted, and worst, some even faced lawsuit.
Most people don’t want to pay collection agencies. Perhaps because, in addition to annoying collector calls, there’s not much of a benefit in paying off a debt collection.
But before you decide to ignore a collector altogether, make sure you are aware of the consequences that come along with it.
It will leave serious damage on your credit
Collections agency have the capability to report accounts to the credit bureaus. This is something you wouldn’t want to happen as negative reports can impact your score for a long time.
Debt collections are serious delinquency and it indicates to other creditors and lenders that you are a risky borrower, resulting in a more challenging application for new credit.
People you know may be contacted
Receiving frequent calls from a collector is one thing. But the fact that the people you know may be contacted by the collector is worse!
In the event that the collector is unsuccessful in reaching you several times, he or she is permitted to reach you through third-parties such as your neighbors, relatives, or your employer.
However, a collector isn’t allowed to disclose any matters regarding your debt at all means.
You could be sued
It is a common belief that collectors won’t sue you if the amount you owe is lower than what people deem as a high amount of debt. But in all reality, collectors have the power to sue you for a debt of any amount.
While you can ignore a collector’s call, it wouldn’t be a wise decision to ignore a lawsuit summon. The best thing to do is to consult a lawyer on the best way to proceed.
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