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Collections agencies are third-party companies charged with collecting overdue debts. They'll call you, send letters and attempt to get you to pay back the debt you owe. If they're successful, they'll take a cut of the recovered amount.
If You Owe Money The creditor will sell your debt to a collection agency for less than face value, and the collection agency will then try to collect the full debt from you. If you owe a debt, act quickly ? preferably before it's sent to a collection agency.
Washington law requires debt collectors to get a license from the Washington State Department of Licensing (DOL) and post a bond before attempting to collect debts. They must renew their licenses yearly. Out-of-state debt collectors also have to get a license before attempting to collect from Washington residents.
In the worst-case scenario, the agency will try to garnish your wages or seize your property. These extreme actions are only possible, however, if the contract you signed with the original creditor and state law allow for them.
Beyond contacting you directly, they can take you to court and sue for what you owe them. If they win?or you don't show up in court?they may be able to take money from your bank account, garnish your wages or place a lien on your property. After a certain period, debt collectors lose the right to sue you in court.
The Washington Collection Agency Act and federal Fair Debt Collection Practices Act prohibit harassment, false or misleading statements and unfair practices by collection agencies.
Even if a debt has passed into collections, you may still be able to pay your original creditor instead of the agency. Contact the creditor's customer service department. You may be able to explain your situation and negotiate a payment plan.
If your debt is sold to a debt collection agency, you will owe the new creditor money. If you choose not to dispute the debt, you'll need to repay the debt to avoid being taken to court or having your wages garnished.