Dealing with Collection Agencies, Credit Reports and Debt
Problems with collection agencies
What can a collection agent do to get my money?
A collection agent has almost the same power as other creditors. They can persuade you to pay or work out a payment plan. If you do not pay, the agent can sue you for the unpaid debt.
The collection agent is going to sue me. What will happen?
The collection agent says he is going to seize my belongings. Is this legal?
A collection agent cannot garnish your wages or seize your property without beginning a court action. The only exception is property given as security for a debt. For example, if you buy a car and use the car as security for a loan, the creditor may seize the car if you default on payment of the loan. The creditor does not have to sue before seizing the car.
Are there any laws that govern collection agents?
Yes. It is against the law for a collection agent to:
The Collection Agents Act controls the practices of collection agents and collectors and requires them to be licensed and bonded.