How a Collection Account Affects YouĬreditors report collection accounts to the credit bureaus, and the information stays on your credit report for seven years. Alternatively, original creditors can hire a collection agency and only pay once the debt is collected. The collection agency can buy the old debt from your original creditor for a reduced amount and keep whatever they collect. For example, if you default on student loans or on a medical bill, the original creditor may give your account to a collection agency. However, debt collectors often are collection agencies that purchase an outstanding debt from another company in order to profit on it. What Is a Debt Collector?Ī debt collector is any creditor who calls for payment on a debt, including an original creditor. To resolve your situation, you must start by understanding how debt collectors and collection accounts work. You may repeatedly deny the debt, but to no avail.
If you don’t owe the debt in question, harassment makes the situation even more difficult to deal with. Some collectors speak harshly or issue threats, and if you don’t take a stand, this bad behavior can continue for months or years. Though there are laws to protect you from harassment, a collector may call your home nonstop, as well as harass your family or any other person listed as a reference on your account.
While there is never any excuse for abuse, the behavior of some relentless debt collectors can border on abusive.