Can CA sue if they are only on commissions?

[GucciMark]

I just read this on the internet and wanted to know if this is accurate information....

What are the chances of a lawsuit and Judgment?

Getting sued is dependent on many factors and is becoming more commonplace as more and more debt is going to collections. Recently JDB have been using the Small Claims Court as a legal “feeding tough” for getting judgments.

If you are served with legal documents specifying a particular court, hearing date, etc., you should see a qualified attorney immediately. At a minimum you need to show up.

If the debt still belongs to the original creditor, and the CA is working the account on commissions to collect, than the CA cannot file a lawsuit. However, if the balance is large, the debtor is being resistant, and if there are indications that the debtor has vulnerable assets, the CA may send the account back to the OC with a recommendation to sue. Each creditor has its own criteria for the decision.

Collection agencies tend to avoid sending too many accounts back to the OC, since it suggests that they aren't very good at collecting. Also, letters and phone calls are much less expensive than going to court.

If an agency has bought a debt, than they have the ability to sue.

Collectors tend to focus on fear and intimidation, since those things can work much more quickly, cheaply, and efficiently than legal action.

The first thing you may want to find out, “Is the CA on commissions or have they bought the debt?” That would be a good indicator as to your chances of getting sued, at least in the short term.

Is this accurate? also, how would you find this info out?

[Big Time]

Recently JDB have been using the Small Claims Court as a legal “feeding tough” for getting judgments.

small claims? I doubt that.

If the debt still belongs to the original creditor, and the CA is working the account on commissions to collect, than the CA cannot file a lawsuit.

That depends on if the CA is also a law office. If the OC wants to sue, they will find a CA that is set up for lawsuits.

Collection agencies tend to avoid sending too many accounts back to the OC, since it suggests that they aren't very good at collecting. Also, letters and phone calls are much less expensive than going to court.

They will if you have a legitimate dispute with the OC and explain it in writing. If the CA takes too long to collect, the OC will just eventually sell it.

The first thing you may want to find out, “Is the CA on commissions or have they bought the debt?” That would be a good indicator as to your chances of getting sued, at least in the short term.

Hence, find out if it's a JDB, or just a CA who doesn't actually own it. It's usually easiest to call the OC and ask if they sold it and to whom.

[kevin3344]

The first thing you may want to find out, “Is the CA on commissions or have they bought the debt?” That would be a good indicator as to your chances of getting sued, at least in the short term.

I don't know where you got that information, but it makes absolutely no sense. Do you know how many millions (billions?) is owed to CAs? Why would they spend the time and money in court when people don't know their rights and pay willingly? That's why they call you all day and every day because it works!

Secondly, even if they sued those that owed, all that would get them is a judgment. They still have to collect the money. They would have to find out where you work to garnish your wages, or your bank. Not easy or cheap work. That's if they can find them at all...20% of people move every year. I live in another state, with different SOL and no garnishment. How would they get the money from me? Bottom line is, CAs will do what they've always done. Use court as a last resort.