Can creditor send accounts to collections on receving money?

Date: Wed, 11/23/2005 - 14:54

Submitted by anonymous
on Wed, 11/23/2005 - 14:54

Posts: 202330 Credits: [Donate]

Total Replies: 1

Can an original creditor turn the account to a collection agency even if they are receiving regular payments from me? I believe that as long as I am paying to my creditors, my accounts won't be sent to collections and I am not to be sued for anything. Can you confirm this for me?

Hi Lewis Welcome to the forums. Any financial institution

Hi Lewis

Welcome to the forums.

Any financial institution can hire a collection agency as their "accounts receivable department". It's completely up to their choice. They do have to pay a service fee to the hired agency. So, if they want to hire one, it depends upon the circumstances at that situation. This is a business decision and not a legal decision of the financial institution.

Suing you while you are making payments is also dependent upon the available situation with your creditors. They might not be willing to continue with the payment plan at a certain point due to various reasons. This is also a business decision and not a legal decision. Facts show that no one has been sued in between the plan but there are no set laws that prohibit it.

Regards
Roxette

lrhall41

Submitted by roxette on Wed, 11/23/2005 - 15:06

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