Sending someone to collections without notice

Can you legally send someone to collections without notice?

Comments for Sending someone to collections without notice

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Aug 02, 2010
notice on collections account
by: Gerri

If you are in default on a loan, there is generally no separate disclosure required before your account is sent to collections. Perhaps you can use the comments link below to tell us a little more about your situation so we can try to point you in the right direction.

Aug 02, 2010
Debt turned over to agency without notice
by: Mary

Thanks for submitting your debt collection question on our Q&A page.

The federal Fair Credit Reporting Act does not obligate a creditor to notify you that it's about to send your past due account to collections. However, some states do have laws requiring prior notification. To find out if your state has such a law, contact the consumer affairs office of your state attorney general or get in touch with a consumer law attorney in your area that handles debt collection cases.

Please share what happens with your situation in the comments section for this question. We are very interested in hearing how this turns out for you, and your experience can help others who are struggling with debt collectors.

Nov 08, 2010
same boat
by: Anonymous

Txu has done this to me. They said since it is a closed account they didn't have to notify me. I paid my last bill but had a previous balance. They said their policy is to automatically send account to collection after 60 days on closed accounts. No call, no email, no letter...this is just wrong. I had moved...they should have to make some attempt to contact me. Had I been sent a notice I would have paid it on the spot.

Nov 09, 2010
Collection account
by: Gerri

It sounds like TXU is a utility company. Is that right? We hear these kinds of complaints all the time and we agree with you - they should be required to notify you in advance before it goes to collections (and ruins your credit) or at least give you a reasonable number of days to pay before it reports as a collection account.

Please do make sure you file a complaint with the FTC and your state legislators. It would be great if a state passed legislation to require reasonable notice. It might set a positive precedent. Unfortunately, I don't see it likely to happen at the federal level right now.

Sep 13, 2011
Am i at fault or they are fraud
by: Anonymous

I was turned over to a collection agency for an online class i have previously taken.Without any notice a collection representative calls and tells me i have to pay 101.00 dollars every month to avoid garnishment,tax deductions,and etc.And the problem with this they also added another 2,000 dollars which comes a total of 5,000 dollars just for going to collections.What i do not understand is that my credit history is saying i owe 3,000 which is showing bad because it is under collections.My score has really suffered from this.My real concern is this was not a loan nor financial aid assistance. This was suppose to be a direct bill payed by my job. I sent them vouchers plenty of times ,but they failed to realize i was sending them money. I just stop the classes before i got further in debt.So what do i need to look further into. The school tells me since i am in collections they have nothing else to discuss with me. This is such an unnecessary debt for me.

Reply from

Quite honestly, we don't know the answer to your question. We are going to have to recommend you talk with a consumer law attorney. You can find one locally through or call the Collection Complaint Hotline at 888-711-5183 for a free, confidential case evaluation. There is no fee unless you recover.

Jul 08, 2014
by: Anonymous

That is outright ridiculous. You have to give people a chance to pay. Sometimes there is a dispute or an error on the bill or in my case I was on vacation for a month in Europe. That doesn't mean that you send collection calls to that person. I have always had very good credit and my bills are ALWAYS paid on time.

Nov 17, 2014
I paid it seven months ago
by: Anonymous

I had paid my 3500 hundred dollar debt seven months before I received a lawsuit in the mail. I sent them proof I had settled the debt and called the law firm representing and told them I paid it and had proof. I then faxed them all the proof twice and they put me in bad credit anyway 12 days later!! A bunch of total losers and I'm reporting them to the state, bar association and anyone else who will listen!

Jul 13, 2015
medical bill in collections
by: Anonymous

A hospital sent me a past due notice with a due date to contact them or pay them and I did but found out they had already turn it in to a collection company who contacted me after the fact. Is that legal?

Reply from

It depends. It's generally not illegal for a bill to be sent to collections if it's delinquent. But there are some new rules under the Affordable Care Act that apply to non-profit hospitals. Is this a non-profit hospital?

Aug 17, 2015
by: Anonymous

I moved out of my old apartment and now I am seeing a collection account on my credit. I am in the state of Texas. I never got any notice saying that I even owed them money. They did have my new address so there are no excuses why they couldn't send me a bill. Is this legal for them to place this amount on my credit without prior notification?

Reply from

It's not necessarily illegal. It depends on the facts and circumstances of the situation. But since you are in Texas you have an option for free help available: the Texas Consumer Complaint Center.

Sep 03, 2015
by: Kayla

A few months ago I was late on a bill, as soon as I realized I paid it right away! I was 30 days late and I paid the late charges also. After paying the bill I started receiving calls from the corporate office of the bank which my loan is through stating I was late. I informed them it was paid but for some reason it wasn't showing that on their end. My local branch told me they would take care of it. I then received a call stating my bill would soon be sent to collections I informed them again we paid it through my local branch and they said to have my bank send a receipt.

My bank informed me they would not allow it to go to collections that they would take care of it. On our end it all seemed good until now while trying to purchase our house. During 1st credit check about a month ago everything was good. Just today I received a call stating a collection just showed and lowered our score 55 points and we can no longer get the loan! Do I have a case here?

Reply from

Given that you have a mortgage loan on the line, we recommend that you contact a consumer law attorney right away. You can find out how to get free legal advice about debt collection here.

Sep 08, 2015
Non-accrued PTO
by: Anonymous

So I have PTO that my old company is saying that I owe. However it was supposed to be bearevement and HR said that that is something I would have to talk to my old supervisor about which she already said she cant do anything. SO I recieved a letter in the mail saying that if I dont pay it back I will be un rehirable through the company.. which is fine. But if I dont pay can they also send me to collections or do they have to notify before doing so. and I am located in Nevada.

Reply from

We aren't experts on HR laws, unfortunately. Can you try the Dept of Labor?

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