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What Happens if you Ignore a Debt Collection Agency

Nexa Collect

Legal Action : The creditor or collection agency may file a lawsuit against you to recover the debt. If you ignore this or fail to defend yourself in court, a default judgment may be issued against you. Debt Sold : The debt collection agency might sell your debt to another agency.

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You’re in Debt: 9 Terms to Know

The Kaplan Group

FDCPA ( Fair Debt Collection Practices Act). The Fair Debt Collection Practices Act (FDCPA) is a federal law that restricts the behavior of collection agencies when they are attempting to collect money from individuals. These provisions mean that you may owe interest on unpaid debts.