How do I deal with collection agency?
When the judgment was filed against you, you were effectively ordered by the court to pay the debt and the credit card company was given permission to use any legal means by which to collect the debt. That would include turning it over to a credit collection agency. Collection agencies work in one of two ways … 1. They purchase the debt for pennies on the dollar and try to collect it. Whatever they collect over and above the amount they paid is profit, and 2. They agree to try to collect and keep 33% – 50% of whatever they collect with the remainder going back to the credit card company. How do you deal with them? As a third party collection firm, they are governed by federal restrictions on such things as times of day that they can call and what they can threaten to do (they can’t threaten anything illegal). Ignoring them is the worse thing you can do in that, with the judgment, they can continue to follow up for collection literally for years (judgments in some states remain active
