You are wrong if you think that ignoring written demands and calls from a collection agency will spare you from all the consequences.
A debt collector has several ways to find your latest address, phone number, and employer information. This process is called skip tracing. Your credit card address, USPS change of address, address on your most recent bills are collected by data aggregation companies and/or credit reporting agencies. The majority of this data is accessible through the skip tracing service providers. In this digital age, hiding is hard.
If you do not dispute the debt within 30 days of the first contact made to you (through phone or letter, or other permissible means), the debt is considered valid, and the debt collector can continue to contact you.
If the debtor is not traceable or unresponsive, a collection agency can file a lawsuit, and if you do not respond in court on time, it can result in a default judgment against you. Repercussions can include wage garnishment, frozen bank account, and other assets. Collection laws vary by state, but there are provisions in every state on how unpaid debt can be recovered.
Not every case lands in court. However, most unpaid bills are reported on the debtor’s credit report and stay there for seven years. This diminishes the chances of securing a new loan, getting a good job and even finding a new apartment to live in.
Although all this may look draconian, imagine what will happen to businesses in the USA if most bills remain uncollected. Businesses will shut down, people will lose jobs and the economy will suffer dearly.
Collection agencies have a significant role in protecting businesses, and even the government has laws and provisions that can be followed to recover accounts receivable.
Ignoring a debt collector’s calls can be quite unfavorable.
Image source:
https://commons.wikimedia.org/wiki/File:Bury_your_head_in_the_sand.jpg
Sander van der Wel from Netherlands, CC BY-SA 2.0 , via Wikimedia Commons