When Will A Debt Collector Sue?

No one wants to be in debt, but difficult times call for difficult measures. If you are in debt and it has gone into collection, you may receive calls and texts from a debt collector. The debt collection agency may call you non-stop to ask for the remaining payments. However, they are not allowed to use unfair practices, such as harassment, blackmail, abuse, etc. 

A debt collector may sue you if you fail to make the right payments at the right time. Borrowed money that you are unable to pay off can lead to complicated events. If you are getting sued by a debt collection agency, you must take legal assistance from a debt attorney Chicago today. 

Getting sued for unpaid debt: When do they sue?

Debt collection is a complicated process. However, no matter how much money you may owe, you still have rights under the Fair Debt Collection Practices Act or FDCPA. This Act protects the consumer from certain dirty tactics of the collection agencies and outlines what they can and cannot do. They may make various attempts to contact you for the debt, such as phone calls, texts, or written letters. 

Lenders usually hire debt collecting services in Chicago when the debt is 180 days past due. The debt collection agency will make their attempts to recover the owed money but will sue when they believe the option will get them money soon. Here are some common factors they consider before filing a lawsuit: 

• The age of the debt
• The amount owed
• The agency’s ability to locate the borrower
• The debtor’s ability to pay
• Whether there are assets that have positive equity
• Wage garnishment state law
• Statutes of limitations
• Expected collection amount

How long does it take for a collector to sue?

Most creditors do not begin their collection attempts until the debt is 30 days past due. These attempts usually involve a few phone calls, letters threatening to sue, and some due invoices. Once the debt becomes 180 days past due, the creditor may turn the account over to a collection agency, which then continues to ask for the payments. 

From here, the collection attempts are made by a collector from the agency via phone calls, texts, emails, or in-person meets. They usually try to seek payments for a few weeks before they file a lawsuit. A collector may also threaten to sue before they actually do it. Therefore, this is a good sign of becoming serious and paying the installments. 

Remember that a collector is not allowed to make false threats to sue; they cannot threaten to sue unless they are serious about it. The FDCPA prohibits making threats only with the intention of scaring consumers.