![]() Once you’ve decided to send an overdue account to a collection agency, what happens to it? Sometimes it depends on the type of debt that was incurred. The most common debts sent to collections are ... What to Expect When an Account Goes to Collection Let’s Follow an Account Through the |
The Statute of Limitations The statute of limitations on debt varies from state to state and is categorized according to four types of debt: Oral agreements Written contracts Promissory notes Open-ended accounts (For a state-by-state list of the statute of limitations for debt, click here.) Once the statute of limitations has run on a debt, legal action may no longer be pursued. However, collectors may still pursue collection of these time-barred debts, so long as they comply with the FDCPA. In addition, if the consumer asks about the statute of limitations, the collector must explain that the debt is time-barred. |
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Once the verification has been submitted, a regular schedule of collection letters and phone calls is resumed. In all communications, the collector should respectfully request payment and explain the time frame for reporting delinquencies to the credit bureaus, if applicable.
Many collection agencies use a scoring model to assess contact ability and probability of pay. Scorning models and workflow can determine the next course of action or the focus of work on the accounts. The scoring workflow continues until resolution is obtained, or the creditor authorizes legal recourse because all attempts to resolve have been unsuccessful. When Legal Action Is NecessaryOnce it has been determined that a consumer has the ability to pay but is choosing not to, or will not respond to collection efforts, the collection agency may choose to pursue legal action.
Assuming the lawsuit is valid, the court will issue a judgment in the creditor’s favor, ordering the consumer to pay the debt. Without a judgment, the debt collector cannot seize a consumer’s paycheck or bank account. With a judgment, however, the collector can begin to garnish the consumer’s wages through a garnishment order. |
Please note that resolution with the consumer is still attempted throughout this legal process,
allowing him or her every opportunity for resolving the debt.
allowing him or her every opportunity for resolving the debt.
If there are no wages to garnish, the collector can place a levy on the consumer’s bank account, allowing the creditor to seize the asset. Alternatively, the collection agency can place a lien on the consumer’s property.
What If the Consumer Cannot Be Located?

Sometimes the consumer’s contact information is not accurate or up-to-date and the collection agency must employ various techniques to locate him. This is called “skip tracing.” (See “How Does Skip Tracing Work?”)
The skip tracing process requires specialized expertise as well as access to numerous databases, some of which are proprietary. For this reason, it should be left to professional debt collectors. An inexperienced or untrained individual can easily and advertently violate privacy laws, leaving the creditor vulnerable to a lawsuit.
At CSC, our “clients first” philosophy mandates professional treatment of both our clients and their consumers. And our passion for ethics, compliance and client satisfaction translates into a higher recovery rate for creditors.
The skip tracing process requires specialized expertise as well as access to numerous databases, some of which are proprietary. For this reason, it should be left to professional debt collectors. An inexperienced or untrained individual can easily and advertently violate privacy laws, leaving the creditor vulnerable to a lawsuit.
At CSC, our “clients first” philosophy mandates professional treatment of both our clients and their consumers. And our passion for ethics, compliance and client satisfaction translates into a higher recovery rate for creditors.
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Credit Service Company, Inc.
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2150 Lelaray St.
Colorado Springs, CO 80909 P.O. Box 1120
Colorado Springs, CO 80901 |
Any correspondence related to a dispute should be sent to:
Credit Service Company, Inc. PO Box 2247 Colorado Springs, CO 80901
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2022 Credit Service Company, Inc.
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This communication is from a debt collector and is an attempt to collect a debt. Any information obtained will be used for that purpose.
Credit Service Company, Inc.
is proud to be a Service-Disabled Veteran-Owned Small Business and HUBZone Certified. |