If you default on a loan, credit card, utility payment or on internet bills. You run the risk of having your account sent to debt collector companies. These third-party agencies are hired to pursue a company’s unpaid debts. A defaulter is still liable for his/her bills even after it’s sent to a debt collector company.
Most people when purchasing home appliances or any other items on installments or they take a loan from lease companies they don’t want to pay it back. It is not as easy as most people think, and they end up with severe consequences.
Nowadays, every lease companies or other firms who sell their items on installments are affiliated with debt collection agencies. These agencies collect debt from people. If unfortunately, you are from such groups who don’t want to pay off their debt then you should think about what type of consequences you can face. For example, these days debt collector agencies are active such as talk about debt, visit this website for more information on how they work.
However, before deciding you are not paying off your debt, make sure you know the consequences of ditching the firm or company.
A Debt Collector Agency Can Report to the Credit Bureau
One of the most serious consequences a defaulter can face is the report of his/her collection account to a credit bureau. It can lower your overall credit score. When your account is damaged by the collector agencies this can cause various troublesome side effects including:
- High insurance premium
- Denial of credit card applications or loan
- Higher interest rate if you are approved for taking a loan
- Difficulty in getting jobs in recognized companies
You May Called by Debt Collector
Collection agents are highly trained to collect debts. Writing and calling you are the two primary ways to try to persuade a defaulter to pay.
You may not believe the debt collector can call defaulter’s family members or friends and may call his/her at the workplace. Getting bundles of calls and letters can be stressful. This will not be going to stop until one pay his/her debt.
They Can Sue You
One of the scariest things that a debt collector can do occur when the courts get involved. When you continuously ignore the warnings given by the debt collector agency, they may resort to a lawsuit in an attempt to collect a defaulted debt.
If a defaulter fails to respond and debt collector agency wins the lawsuit, the court will enter the judgment against the defaulter. The verdict can be depended upon the local laws of the state where you’re living in. This verdict might open up with the following possibilities:
- Bank account Taxes
- Wage garnishment
- Freeze bank accounts and other property
The result of the story is this: don’t try to ignore the warnings of debt collector agencies. We suggest you try to settle on a smaller amount so you can avoid any legal activity.
Pay High-Interest Rate
Bank defaulters have to face many other problems, including high-interest rates when they go to borrow money from any money lender company. Even they may not get approved their loan application due to their bad repute.