Can a collection agency take you to court?

In: Debt Collection, Law and Legal Issues

[Edit]

Answer

Collection agencies are simply collectors. An outside collection agency does not have the power to sue or instigate legal action without the permission of the original creditor. However, if the account is sold to a third party collector, and a settlement is not made, that agency can refer it to an attorney for legal action such as arbitration or lawsuit.

First answer by ID0000000000. Last edit by Macky. Contributor trust: 3532 [recommend contributor]. Question popularity: 127 [recommend question]

Also see on Answers.com

Collection agency (military)
Adjustment and collection services (SIC 7322) (industry)

Research your answer:

Can you answer other questions about debt collectors?

Answers.com > Wiki Answers > Categories > Business and Finance > Personal Finance > Debt and Bankruptcy > Debt Collection > Can a collection agency take you to court?

Our contributors said this page should be displayed for the questions below. (Where do these come from

)

If any of these are not a genuine rephrasing of the question, please help out and edit these alternates.

Third party collection agency court? Can a credit agency take you to court? What happens when a collection goes to court? Will a collection agency take someone to court? In oregon can a collection agency take you to court? Can a collection agency take you to court for 250.00? Failure to appear in court being suded by collection agency? Can a collection agency take a person to court for a bad check? Who pays court costs for a collection agency taking you to court?