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If you are making monthly payments to an original creditor can they still turn the debt over to a collection agency? I thought as long as you paid something they can't do that. or is it as long as you pay something they can't sue you?? I'm not sure, does anyone know?
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It's not a question of "can they" and more a question of "should they". You refer to a "debt", so that sets the context. A company can retain a collection agency to be its "accounts receiveable department", if it chooses to. It just makes the decision that it doesn't want to bother with collections. Bear in mind that a creditor pays a fee for the agency's service, even if it's a contingent fee that's deducted from recovery. The decision on when and under what circumstances to refer matters to collection is, in the first instance, a business decision, not a legal decision.
And the creditor or the CA can sue you while you have a payment agreement and are performing. Again, it's a business decision, not a legal decision, about whether that's cost-effective. On the facts, you might not expect suit, but there's no legal prohibition against it.
11-21-2005, 07:08 PM
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