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Debt Relief: Difference between revisions
→Collection Agencies
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* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. | * A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. | ||
* Bad debt is referred to a collection agency because the debtor has ''poor money management skills, is ill, or has a lack of desire to pay'' what is owed. | * Bad debt is referred to a collection agency because the debtor has ''poor money management skills, is ill, or has a lack of desire to pay'' what is owed. | ||
*Collection agencies charge a percentage | *Collection agencies charge a percentage of what is collected as a fee for the service. | ||
*The methods used by credit agencies to collect unpaid accounts are telephone calls to the debtor, [[Debt Relief:Definitions#Sue or suit|lawsuits]], and [[ Debt Relief:Definitions#Garnishee or Garnishment|garnishments]]. Collection agencies will provide a pay plan as well. | |||
*The methods | |||
*If the debtor does not pay using a pay plan, the collection agency will [[Debt Relief:Definitions#sue or suit|sue]] or [[Debt Relief:Definitions#garnishee|garnishee]] the wages until the debt is settled. | *If the debtor does not pay using a pay plan, the collection agency will [[Debt Relief:Definitions#sue or suit|sue]] or [[Debt Relief:Definitions#garnishee|garnishee]] the wages until the debt is settled. | ||