debt collectors empty threats?
June 12, 2007 4:06 PM Subscribe
Can collection services/debt collectors like NCO financial take me to court or levy some sort of legal action on me for failure to pay? the amount is about $2500
Yes, definitely. Depending on the nature of the debt, they can even successfully sue to have your paycheck garnished in order to receive the payment owed.
posted by synaesthetichaze at 4:26 PM on June 12, 2007
posted by synaesthetichaze at 4:26 PM on June 12, 2007
The short answer is "yes". The medium answer is "yes, but..." In your case, the answer is "watch out!" NCO, in particular, is a scam outfit. Take a looky-loo at this thread before you hand them a dime.
posted by angry.polymath at 4:48 PM on June 12, 2007
posted by angry.polymath at 4:48 PM on June 12, 2007
Oh yes, angry.polymath is right too... while NCO is perfectly capable of suing for payment, collectors are essentially a gang of bullies; this coming from a former debt collector. You probably shouldn't believe anything they say to you, especially on the phone.
You see, places like this exploit the incompetence of their workforce and the bureaucracy of a modern financial organization. All they have to do is improperly train their phone collection drones to harass and annoy you, and they have plausible deniability if anyone ever comes after them. "Rogue collector" is a phrase that comes to mind. The drone is fired for doing what they're told to do, but the system never changes.
I'm sure it helps that the people they're going after are often unable to pay for their own needs, let alone for a lawyer to sue the collection company.
Pro tips for being pursued by debt collectors! Demand everything in writing. And, you should never admit to owing a debt over the phone. Even if they're wrong about who owes the debt in the first place, if you admit to owing it, then they pretty much have you... unfortunately.
posted by synaesthetichaze at 5:01 PM on June 12, 2007 [1 favorite]
You see, places like this exploit the incompetence of their workforce and the bureaucracy of a modern financial organization. All they have to do is improperly train their phone collection drones to harass and annoy you, and they have plausible deniability if anyone ever comes after them. "Rogue collector" is a phrase that comes to mind. The drone is fired for doing what they're told to do, but the system never changes.
I'm sure it helps that the people they're going after are often unable to pay for their own needs, let alone for a lawyer to sue the collection company.
Pro tips for being pursued by debt collectors! Demand everything in writing. And, you should never admit to owing a debt over the phone. Even if they're wrong about who owes the debt in the first place, if you admit to owing it, then they pretty much have you... unfortunately.
posted by synaesthetichaze at 5:01 PM on June 12, 2007 [1 favorite]
Do you owe someone money, and might NCO have bought that debt?
Have you failed to pay the debt as agreed?
If the answer to both is yes, then they can probably sue you.
posted by oaf at 5:40 PM on June 12, 2007
Have you failed to pay the debt as agreed?
If the answer to both is yes, then they can probably sue you.
posted by oaf at 5:40 PM on June 12, 2007
Check on what the limit is for small claims court/conciliation court in your area. If they can take $2500 (plus fees, etc.) to small claims court, it doesn't cost them much in time or court costs to do so. If they have to go to a regular civil court, it's more expensive for them, and could involve real legal fees on their end. (Example)
If you don't actually owe it, you need to get them some documentation of that. They lose money if they spend time trying to collect on someone who won't pay and has a defense.
If you actually owe it and it's way past due, it would be fairly common for them to take you to court. If you get a summons, you could still offer to settle before it goes to court. If it goes to court...you'll probably get a judgment against you (unless you spend money on a lawyer--money probably better spent paying down the debt to stay out of court).
If they get a judgment against you, they could possibly garnish wages, etc. to get the judgment satisfied. This can vary a lot from place to place, depending on the collection agency, how motivated the local sheriffs are, and so on.
A very past due debt and a judgment are both bad on your credit report. However, a judgment is a court action and a matter of public record, so it could show up in other places besides your credit report.
(Me, not a lawyer, but have worked in debt collection.)
posted by gimonca at 5:52 PM on June 12, 2007
If you don't actually owe it, you need to get them some documentation of that. They lose money if they spend time trying to collect on someone who won't pay and has a defense.
If you actually owe it and it's way past due, it would be fairly common for them to take you to court. If you get a summons, you could still offer to settle before it goes to court. If it goes to court...you'll probably get a judgment against you (unless you spend money on a lawyer--money probably better spent paying down the debt to stay out of court).
If they get a judgment against you, they could possibly garnish wages, etc. to get the judgment satisfied. This can vary a lot from place to place, depending on the collection agency, how motivated the local sheriffs are, and so on.
A very past due debt and a judgment are both bad on your credit report. However, a judgment is a court action and a matter of public record, so it could show up in other places besides your credit report.
(Me, not a lawyer, but have worked in debt collection.)
posted by gimonca at 5:52 PM on June 12, 2007
Seconding all the recommendations that you get proof of the debt before you pay them a dime.
And don't conduct ANY communication with them over the phone. Insist on doing everything on paper, via mail, preferably Certified Mail, so you can positively date everything.
posted by Kadin2048 at 6:23 PM on June 12, 2007
And don't conduct ANY communication with them over the phone. Insist on doing everything on paper, via mail, preferably Certified Mail, so you can positively date everything.
posted by Kadin2048 at 6:23 PM on June 12, 2007
« Older Teaching Critical Thinking Skills to kids and... | Where should I go camping near Big Sur? Newer »
This thread is closed to new comments.
posted by grouse at 4:08 PM on June 12, 2007