The truth is, if the account is overdue you can be sued.
Unless you have a formal payment agreement in writing with the bill collector, you can be sued at any time regardless if you are making monthly payments.
The only way to prevent a debt collector from filing a lawsuit is to obtain a written payment agreement.
What is the minimum amount that a collection agency will sue for?
A general rule of thumb is that if you owe less than $1,000 the odds that you will be sued are very low, particularly if you’re creditor is a large corporation. In fact, many big creditors won’t sue over amounts much larger than $1,000.
Do you legally have to pay a collection agency?
You don’t have to pay anything more than what you owe.
Collectors aren’t allowed to charge any interest or fees to your account unless the original contract or by state law allows it.
What happens if you don’t pay a collection agency?
If you don’t pay the collection agency, fortunately, you have some time before being impacted. After 180 days, “a consumer may be sued on the debt or simply called and mailed letters from collection companies who may settle debts for less than the full balance,” Symmes says. However, that may not happen.
Can a debt collector refuse a payment plan?
When creditors refuse payments, it’s usually because company policy prohibits it. It can’t hurt to ask and if your first offer is declined, ask what they feel is an acceptable payment. You may have to negotiate for awhile and what ever you do, DO NOT agree to terms that you cannot afford.