What happens if i dont pay collection agency??

Question

i wrecked my truck last year after that my truck was repod and sold...now i have a collection agency calling me everyday...i was wondering what would happen if i dont pay them??? thanks

Answer 1

the amount owed will go on ur credit as a reposession the  alls may or maynot stop however once its  on ur crdit its there for 7 years unless u pay it off it may prevent you from financing or leasing another vehicle

Answer 2

Typically, if you don't pay the debt one of two things happens.  (1) The creditor simply "charges off" the debt and it goes on your credit report in that manner.  It is a serious black mark on your credit that will hamper your efforts to get loans at good rates in the future. (2) Alternatively, the collection agency may go to court and try to get a judgment against you and/or to try and garnish your wages if you have a job.  Your best bet may be to contact the collection agency and see if you can negotiate a conclusion to the issue.  NOTE: the creditor owns the debt.  If you make an agreement to pay it off I would require the creditor to stipulate (agree) to contact the credit bureau and have the item REMOVED from your credit history.  This is a little known secret in the credit world.  The creditor is the only one that can do this but will sometimes do so if you agree to pay off the debt.  This will remove that negative item from your history, if successful.  (Make sure the agreement is in writing and requires them to remove it from all 3 credit bureaus).  Good luck.

Answer 3

it'll be on your credit report 7 years from the time your account went without payment. you can contact the collection company by  letter asking them to stop contacting you and the phone calls will stop. you can pay what you owe, but it will show up on your credit report as paid. it's possible that the creditor can sue you, but i don't think that happens very often. check the statue of limitations for your state