Legal Question in Credit and Debt Law in Texas
Consequences of bad debt
What steps will be taken from a collection agency in collecting a debt after I have disputed it, and what consequences am I possibly seeking if I cannot pay the full amount in 30 days? What legal actions can I take against their company for calling me at my place of business and failing to disclose their company name the first time they communicated with me? They did not disclose their address to send payments to also. Am I possibly looking at having to go court or can they take an automatic judgment on my behalf? I need help desperately.
1 Answer from Attorneys
Re: Consequences of bad debt
If you have disputed the debt, the agency is obligated to contact the creditor and get validation of the debt. If it's a true debt, and not paid, the agency will eventually turn it over to an attorney for collection through a lawsuit.
Unless you have signed a confession of judgment, any judgment has to result from a lawsuit, and you have to receive knowledge that you are being sued. You will then have your opportunity to dispute it in court.
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