Debt collection agents are allowed to take several avenues when it comes to reaching out to borrowers about paying their debts. Creditors are rigidly regulated at a state and federal level, so they aren’t given the freedom to do just anything when it comes to contacting you. However, if you don’t pay your debt and your delinquent account falls to a debt collection agency, their debt collectors are well within their rights to engage in the following three actions in order to collect your outstanding debt.

Here is what happens if you don’t pay a debt collection agency:

You (And Others) Could Get Calls and Letters

Debt collectors are trained to contact those who need to pay off debts, so it’s very common to receive phone calls or letters from them if they are attempting to persuade you to pay. It is also within their rights to contact your friends and family members for the sole purpose of locating you. They may also call your workplace. While agents are given a good deal of freedom when it comes to contacting you, they’re not allowed to call before 8 a.m. or after 9 p.m. You also have the right to request that a debt collector stop contacting you, but this option should be treated with extreme caution. If they have no means to contact you, the only option they have left is a lawsuit. 

You Could Get Reported to the Credit Bureaus

If payments are missed, a common action debt collectors take is reporting your collection account to the credit bureaus. If this happens, your collection amount will most likely be added to your credit reports, which spells out trouble in many different ways. A collection can lower your credit scores and can remain on your credit report for up to seven years. If your credit is damaged, this could also lead to:

● Higher interest rates

● Loan or credit card application denials

● Higher insurance premiums

You Can Get Sued

By far the most serious consequence of a failure to pay a debt is the possibility of being sued. This is the last resort option taken by the debt collection agent that most likely results from being ignored for a long time. This process varies greatly by the state that you live in, but it is never a good situation to be in no matter the circumstances.

The bottom line is this: If a debt collector is attempting to contact you, it’s always in your best interest to work with them rather than ignore them or put them off. The more willing you are to resolve your problem, the less likely you are to suffer any of the consequences that come from unpaid debts.

Get Help Dealing with a Debt Collection Agency

At Progressive Debt Relief, our staff of experienced financial experts have well-established relationships with most debt collection agencies, so we are equipped and ready to settle your debt for good so you can move on with your life. With our debt consolidation, negotiation, and settlement services, we’ll help you determine which option best fits your situation and work with your creditors on resolving your debt troubles. To schedule a free consultation or to learn more about our services, contact us today.