Can a Collection Agency Sue Me or Garnish My Wages?
Sure they can. Determining the possibility of whether a
collection agency will take legal action depends on who is
trying to collect the debt.If a collector is a large
collection agency, then you may consider that they will
likely only pursue legal action on larger debts. Large
collection agencies generally will only pursue a judgment on
debts of at least $3,000.
If a collector threatens to sue or garnish your wages, you
should heed their warning. It is illegal for creditors to
threaten legal action unless they actually intend to pursue
legal action. This is a protection granted to you by the Fair
Debt Collection Practices Act.
If the collector is a small collection agency, then the
chances of legal action may be increased. Consider that many
small collection agencies are made up of a small partnership of
attorneys. Instead of paying for legal work upfront, they only
have to give up their time.
Any collector can sue and can pursue garnishment of your
wages. However, most courts require that agencies that threaten
legal action show proof that they have taken such action
previously. Otherwise, they may be in violation of the Fair Debt
Collection Practices Act when they threaten to sue you.
See
Articles: Handling Collection Agencies and Old Accounts
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