What to Do If a Collection Agency Calls and You Don’t Answer

When a collection agency contacts you to collect a debt, the consequences can vary greatly. Ignoring the call is often not the best approach. Here's a detailed guide on what these agencies do, the potential outcomes, and the best practices for handling such situations.

What Collection Agencies Might Do

When you don’t answer a call from a collection agency, they might take several actions:

Leave a message: They might leave a voicemail with information about your debt. Send letters: They could send you written correspondence detailing the debt and your options for payment. Aim to contact you again: They will continue making efforts to reach you through various means, including phone calls and emails.

Ignoring these attempts can lead to serious consequences, including legal action and a negative impact on your credit score. Therefore, it is crucial to respond to their communications promptly.

Responding to the Calls

If you find it difficult to pay the debt, it is essential to contact the collection agency to discuss alternative payment options or to create a payment plan that works for you. Communication is key, and being proactive can help manage the situation more effectively.

Understanding Collection Letters and Disputes

Every time a collection agency takes an account, they will send you a letter giving you 30 days to dispute the claim. If you don’t respond within this period, the debt is assumed to be valid, and they can start collection attempts through mail or phone calls. Failing to respond can also lead to the debt being reported as a bad debt on your credit report, which can affect your credit score for up to 7 years.

For debts of significant size, collection agencies may take legal action. However, for smaller debts, the effort required to sue might not be worthwhile, leading to a potential 7-year mark before the debt is removed from your credit report.

The Importance of Communication

Many individuals, especially those seeking help from bankruptcy attorneys, avoid communication with collection agents. They often believe that ignoring the calls will solve the problem. However, this is a costly mistake.

Collection agencies are sophisticated and have systems in place to handle debtors who are trying to evade communication. They may escalate the matter to their lawyers, who can file a lawsuit.

Not responding to a lawsuit can lead to severe legal consequences. After a lawsuit is filed, the creditor can garnish your wages, attach your bank account, place a lien on your home, and even tow your car. Ignoring these calls ultimately leaves you at a disadvantage and with fewer options when facing financial challenges.

Therefore, while you need to be cautious in what you say, it is critical to engage with the collection agency to understand your options and prevent potential legal action.

Conclusion

In summary, when a collection agency contacts you, it is essential to respond promptly and effectively. Ignoring their calls can have severe repercussions, including but not limited to, wage garnishment, bank account attachment, and home liens. Effective communication and proactive negotiation are key to managing debt collection issues successfully.