Select Page

Why You Should Never Pay A Collection Agency

Book A Free, No Obligation Consultation

The 5 Worst Reasons To Pay A Collection Agency

Paying a collection agency isn’t always the best idea. Here are 5 reasons why you should avoid paying them if at all possible.

Collection agencies are often hired by the creditor to collect on debt that is owed to them. The collection agency will then attempt to collect on the debt by calling, writing, or visiting delinquent account holders in person.

Why You Should Never Pay A Collection Agency

The worst reason to pay a collection agency is because they are threatening you with something illegal or unwanted, such as jail time or physical violence. Collectors are not allowed to use any form of intimidation tactics when trying to collect an unpaid debt. If they do, they might be breaking state and federal laws and could have their license revoked for doing so. The second worst reason is because they’ve told you that your unpaid debt will go

Why you should never pay a collection agency

Paying a collection agency will not improve your chances of collecting the debt. The only thing that paying a collection agency will do is to enrich the collection company and make it more difficult for you to collect the debt.



It is not uncommon that people get confused when considering whether or not they should pay their bills or just wait out the collections process. To make it easier, we should consider if we would like to pay our bill and give up on our rights and dignity, or if we would like to keep our dignity and continue working on collecting our debts in full.

What happens if you don’t pay a debt collector

A debt collector is a person that has been assigned to collect payments from an individual who owes money to someone else. If you neglect to pay the debt collector, they may take legal action against you. The debt collector could sue you in small claims court for the amount owed and/or hire a lawyer to represent them in a suit for damages.

4 Reasons You Should Never Pay A Collection Agency

For example, from the latest stats, the pay-per-call market is now up to $5 billion annually in the United States.

Collection agencies are one of the industries that have benefited from this industry. However, there are many reasons why you should never pay them for harassing you, so here are 4 reasons you should never pay a collection agency.

  1. You have rights under The Fair Debt Collection Practices Act.
  2. They can’t threaten to take money from you by force because it’s considered extortion.
  3. They can’t threaten to sue you or arrest you if they don’t even have a legal license to do so.
  4. It is illegal for collection agencies to contact your family members unless they’re trying to find someone who’s agreed to be your guarant.

Can an agency send me to jail for not paying my bills

No, this is not possible

What Happens After I Pay The Collection Agency?

The collection agency does not work for free. They are a business that needs to make money from their clients.

Collection agencies typically charge an hourly fee as well as a percentage of the debt. The percentage is determined by the state you live in and how much they collect from you.

The people at the collection agency have a variety of skillsets, but they all have one thing in common: they live and breathe debt recovery so they know what to say and do to get you to pay up.



How to stop a collection agency from calling or emailing you

Collecting debts, or chasing debts, is an important function of the finance industry. Collectors are responsible for collecting payments from individuals and businesses who owe money to their company. However, many individuals can often feel overwhelmed while they are receiving calls and emails from collectors. It takes a lot of willpower not to succumb to pressure when faced with collectors trying to scare you into paying your debt back.

Does the company that took out the loan have to pay this back

Collection agencies are notorious for their constant calls and emails. Even if you owe the company money, they don’t have to continue to contact you. There are ways of protecting yourself from these pesky collectors.

How To Fight Back Against The Collection Agency?

In this article, we will be discussing how you can fight back against the Collection Agency. When a consumer has been unable to pay off their debt, a collection agency may take over the account and start collecting on it.

Collection agencies have some legal requirements that they must follow in order to collect from a consumer. Those requirements include:

  • There cannot be more than 180 days between the date of an initial contact and the date of a written notice
  • The agency cannot make more than two attempts to collect from a consumer within one week
  • A collection agency is not allowed to threaten to take legal action unless they intend on following through with said action
  • A collection agency is not allowed to demand payment from an authorized person other than the debtor

Can they garnish your wages for unpaid bills?



It is important to keep up with bills as failure to pay them can lead to the garnishment of wages. Certain debts such as child support or unpaid taxes are not exempt from collection.

"Samantha is very professional,informative and knows how to hold a conversation getting you very comfortable in your decision making, this was a must do experience​"

Jone Than

"Very helpful, Martin was really easy to talked to, he answered to all my calls and to all my questions, he is a great professional debt administrator​"

Stacy Waller

"I trully appreciate the help and the honesty of everyone I have dealt with so far and am pleased to get out of debt and work towards building my credit back up after this is all over​"

William Davidson

Join Us

Our Clients Are Like Family

We value our clients and respect each of them. We understand how difficult is to manage all the debts. You are not alone, we can help you with a debt settlement to solve your financial situation.

Debt Settlement Resources & Articles

Bankruptcy Oshawa

Bankruptcy Oshawa

Filing for bankruptcy in Oshawa it was never easier than right now. Contact our LITPro Licensed Insolvency Trustee in Oshawa for a free consultation and start being debt free.

Contact Us

Request a FREE personal and no obligation confidential appointment

M-F: 8am-5pm, S-S: Closed