Is this true?

Generally if a collector gets the account your rating is already starting to go down. They can report it and thus reduce the score further.

They can refer it to a lawyer for suit if they wish.

Garnishment is something imposed by the court after a hearing.

Reposession is something a lienholder does to recover property that has not been paid as agreed to. This is legal.

No threats are illegal.

False threats are not legal. I don't think the rest of it is disallowed under the fdcpa.

fdcpa does not allow a debt collector to-


Ruin your credit rating - if a recent collection (2 yrs or newer) is showing on your credit reports it will significantly impact your scores but not illegal


Refer account to an Attorney - generally a CA does not have the legal standing to sue. If the OC still owns the account, they would be the ones responsible for assigning it to a Debt Collection Attorney. If this is in the hands of a JDB, they would be the ones to initiate suit.

Garnishment or repossession - garnishment would require a judgement first and foremost. If a judgement is granted, then garnishments could be a reality but only if your state allows it. Repossession would generally be in the hands of the OC as well. Terms for default would be spelled out in the contract but many auto loands are considered in default if you are 1 day late.

Extract money by giving false threats - threats of jail, threats to tell your firiends and neighbors and threats to take an action that cannot be taken (suing on a time barred debt) are all examples of illegal threats. Here are the pertinant sections of the FDCPA: