Another Debt/Collection question

[AWorkOfArt]

What is the name of your state?GA
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?

 

[Chien]

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?

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.

 

[AWorkOfArt]

Thanks Chien, I appreciate your response