Can a creditor turn an account over to a collection agency and start legal action at the same time?

Full question:

Is it legal to turn an account over to a collection agency and start legal court action, or can you only do one or the other?

  • Category: Debts and Credit
  • Subcategory: Fair Debt Collection Act
  • Date:
  • State: Minnesota

Answer:

Generally, as long as applicable laws and conditions are complied with, a debt collector may bring a lawsuit. Please see the information at the following links:

http://www.uslegalforms.com/legaldefinitions/d/debt-collection.php
http://www.uslegalforms.com/legaldefinitions/f/fair-debt-collection-practices-act.php

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Yes, you are still responsible for paying a debt that has been sold to a collection agency. The agency now owns the debt and has the right to collect it. However, you can request validation of the debt to ensure it is legitimate and that they have the right to collect it.