What Happens If You Ignore Debt Collectors?
While it may be tempting to simply ignore calls and letters from debt collectors, doing so can have consequences. Understanding your options can help you make informed decisions.
Potential Consequences of Ignoring Debt Collectors
- The calls may increase. Debt collectors may escalate their efforts to reach you.
- The debt may be sold. Your debt could be sold to another collection agency, restarting the collection process.
- Legal action. The collector or original creditor may file a lawsuit against you. If you fail to respond, a default judgment could be entered.
- Credit impact. Collection accounts may remain on your credit report for up to seven years from the date of the original delinquency.
- Wage garnishment. If a judgment is obtained, the creditor may be able to garnish wages or levy bank accounts (depending on state law).
Better Alternatives
- 1. Request debt validation. Within 30 days of first contact, you can request written verification of the debt.
- 2. Send a cease and desist letter. This can stop communication but does not eliminate the debt.
- 3. Know your rights. Familiarize yourself with the FDCPA and your state's consumer protection laws.
- 4. Speak with a professional. A licensed consumer protection attorney can help you understand your options.
Disclaimer
This information is educational and does not constitute legal advice. Consult a licensed attorney for guidance on your specific situation.