How Long Can A Debt Collection Agency Seek Payment?The Short Simple Answer There is no simple answer to how long a debt collection agency can seek payment. Some things are a matter of common sense, while others depend on the law in your state if the collection agency gets especially desperate to collect on the debt. In short, a collection agency can seek payment for so long as they wish. In long, the answer is a bit more complicated.
Common Sense Reasons Why A Collection Agency Is Chasing You There are two main factors involved in how long and how hard a collection agency will seek payment from a debtor. First is how much you owe. If it’s just a few thousand dollars, then it wouldn’t really be a good businesses decision to spend more than that to get payment from you. However, if you owe several tens of thousands of dollars, then you’re prime rib in the eyes of a collection agency. Secondly, most debt only remains on your credit report for 7 years. A collection agency is only as powerful as the things they can hold over your head. If you don’t care about the debt because it doesn’t affect your credit score anymore, then obviously the collection agency doesn’t have much power over you. This can change if they file suit against you, but generally speaking most collection agencies give up seeking payment once the debt is no longer on your credit report. Legal Limitations To Seeking Payment Collection agencies are not technically limited in the time they can seek payment, but they are limited on how long it takes for them to file suit. Each state is different in their limitations and provisions, so find out the regulations for your state if you think a collection agency may go to the extreme measure of filing suit to collect payment.
Related posts:
Leave a Reply |
