The most common reasons our clients need help with credit repair are that they have fallen into difficulties with debt, taken out too much borrowing through multiple lenders, or failed to act decisively when chased for late payments by a credit collection agency.
As a team with years of expertise and a free initial assessment service, the Phenix Group is often rated the best credit repair company, supporting clients across the US who have a low credit score or past issues that contribute to an adverse credit report.
Today, we’ll explain the potential consequences of ignoring credit collection services and why a suitably qualified credit report dispute attorney may be essential if you believe you are being chased for a debt unfairly or in error.
What Can a Credit Collection Agency Do If You Do Not Respond?
In the first instance, debt collectors and collection agencies will likely repeat their communication through letters, phone calls, or visiting your home–they are unlikely to stop purely because a debtor has not answered the phone or replied to a letter.
Unfortunately, even if you know that the debt they are referring to is invalid, you will often find that this continues to worsen your credit rating and may remain on your file for several years. Over the long term, a low credit score or a negative credit report could affect your eligibility for financing and make it challenging to purchase a home, buy a car or even rent an apartment.
Debt collectors may decide to escalate the matter and initiate court proceedings against you, so it is up to you to either settle the account, enter into a repayment plan, or dispute the alleged debt before it reaches this stage.
Can I Ignore a Debt Collector When the Debt Isn’t Owed?
Disregarding a debt collector is always a bad move, even if you find them pushy or intrusive due to repeated calls or correspondence. Debts are rarely, if ever, written off, and many agencies purchase debts from the original company, meaning they will put significant effort into pursuing payment.
Contacting a credit dispute adviser is a great option, giving you an understanding of the laws, consumer protections, and limitations in place, whether you wish to liaise with the debt collector, dispute the accuracy of the debt, or file a complaint about unethical collection practices. For instance, a debt collector must be able to verify the debt they are pursuing, showing you the exact amount owed and to which lender while providing confirmation of account numbers or transaction details.
As a consumer, you are entitled to know how the debt has been calculated and whether the collection agency has the legal right to attempt to collect the debt. From there, you have the information necessary to either offer a settlement, consult a credit expert, or dispute that the debt exists.
How Can a Credit Collection Agent Escalate the Case if You Refuse to Pay?
While every case is different, the ramifications of ignoring a collection agent can be serious. The debt will often grow with added interest fees, late payment charges, or collection costs. Collection agencies, or the companies they represent, will report the debt to the relevant credit scoring bureau, which can have an increasing impact on your credit score.
In some scenarios, the collection agency may take the case to court, securing a judgment against you that can allow it to seize your property, take out a lien against your home, or even make automatic deductions from your wages–this is called a ‘garnishment.’
A credit attorney can assist at any stage, preventing your debt from affecting your credit score further and ensuring you take the right steps to rebuild a healthy, debt-free credit report. When you’re ready for help, The Phenix Group has your back!