You understand that you owe money on a particular account, but you just don’t want to be bothered at the moment. You may have other more immediate financial issues to address, or you’re not sure if the debt in question even belongs to you. Rather than take the appropriate steps to address the issue, you ask yourself “What would happen if I just ignored the debt collectors?” Millions of people pursue this course of action unaware of the potential dangers. Here is what you can expect to occur if you disregard debt collectors.
The Calls Stop… For Now
The calls from the debt collector may stop, but do not get too excited just yet. Chances are they’re pursuing alternate methods of contacting you or selling your account to a debt buyer. Either instance is unfavorable as the debt harassment is likely to continue.
Your Credit Score Plummets
When your account goes into collections, it will always show up on your credit report and damage your credit score. What differs when you fail to respond to debt collectors is that you lose the opportunity to negotiate a repayment plan.
They Contact Your Relatives
Yes, debt collectors will contact your mom, brother, sister, or whoever else to collect a debt. While it is illegal for them to mention your debt to your relative, they can request updated contact information. If your relative complies and confirms that the information they have is accurate, the debt collector may amp up collection efforts.
Your Debt Accrues
Ignoring collection calls doesn’t make your debt disappear. The interest rate that you agreed on for the credit card or loan remains relevant and is applied to your account for every missed payment. Depending on agreement specifics, the creditor may be able to tack on collection fees and add interest. Consumers have reported their debt doubling due to interest and additional fees.
Your Debt is Sold
As mentioned earlier, the creditor can sell your debt to a debt buyer. Even if the debt collector in question purchased the debt from another entity, they could still sell your account to another company. This entity may have debt collection tactics that are far worse than the prior company.
You Get Sued
Few people understand the magnitude of debt issues. A creditor, lender, or debt collector with legal standing to pursue a claim can sue you for payment delinquency. With a favorable judge ruling, the debt collector can garnish your wages and freeze your bank account.
However, many debt collectors violate the Fair Debt Collections Practices Act (FDCPA) in the pursuit of payment. The Florida FDCPA attorneys at The Law Offices of Jibrael S. Hindi can help you secure up to $1000 per violation and possibly eliminate your debt. You may be in debt, but that does not give debt collectors and creditors the right to violate your privacy and harass you. If we determine that you have a case, there is no cost to you to pursue the claim. Under the FDCPA the defendant (debt collectors) must pay your attorney fees and costs. Contact us today for a free case evaluation.