Can a collection agency sue for a debt?
Whether or not a collector can sue depends on who owns the debt. If the collection agency doesn’t own the debt outright, and is only paid a fee by a company to recover the money, then the agency can’t sue. It’s up to the creditor to decide if he wants to take the debtor to court. In some cases, a debt collection agency actually purchases the debt from the creditor. This way, the agency owns the debt and can then sue. Most of the time, however, the effort and expense involved in a lawsuit is not worth it. Unless the debtor owes a great deal of money, it’s unlikely they’ll get sued in court. When you are comparing collection agencies, it’s important to choose one who will follow the rules and respect debtors’ rights. Ensure you work with only professional, law-abiding collectors: submit a free request for quotes and get matched to multiple agencies at once.
