Legal Question in Credit and Debt Law in Utah
collection and court
I received a letter form a collections company a week ago that said I had 30 days to dispute the debt and after 30 days they would consider it a valid debt. My sister co signed with me on the loan and the collections company called her yesterday and stated if they did not receive the money in 24 hours she would be sued. They have not contacted me at all. Can they sue that quick?
1 Answer from Attorneys
Re: collection and court
Not likely. Collection agencies do not generally sue, lawyers do that. Even if sued you have twenty days to answer the suit before judgment can be issued. If you answer and deny the debt, then there will be a trial sometime later.
It sounds like the collection agency is over reaching. They cannot threaten to sue until after the 30 day period expires unless they regularly sue earlier - and none do.
If the loan is in default they can demand payment from her without contacting you. However, I am sure you don't want your sister involved, so contact the collection agency and set up payment options.
By the way, they probably are not legally required to accept payments, but most will. Remember the collection agency is paid based on the money they collect. But get any agreement in writing.
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