Is this collection agency or debt collector legitimate?

A person contacting you about a past-due bill or account might represent one of these:

1. A licensed collection agency. You can search our roster of licensed collection agencies here. 
2. A collection agency that has not yet obtained an Arkansas license. (This is uncommon.)
3. A business that is exempt from having to obtain a collection agency license. These can include banks, attorneys, and creditors collecting their own accounts.
4. A scam, con, or fraud.

How can I tell if a debt collector is a fake?

Fraudsters can use the internet to obtain personal information about you, your family members, and even people’s financial accounts. But just because someone calling seems to have your personal information doesn’t mean they are a real debt collector. Here are some signs that a debt collector might not be authentic:

1. Calling you from a blocked, private, or unlisted phone number; or texting you from an email address.  
2. Asking you to “confirm” personal information, like your birthday, middle name, or social security number.
3. Trying to collect on an account that you don’t recognize, or that didn’t belong to you, or that was closed 10+ years ago.
4. Trying to collect several accounts from different alleged creditors.
5. Contacting you soon after a serious event or life change, such as a recent death, divorce, injury, or natural disaster.
6. Swearing, threatening, or yelling.  Real debt collectors are not permitted to be abusive or aggressive when communicating with Arkansas residents.
7. Asking you to pay in gift cards, cryptocurrencies, or other non-bank forms of payment. A legit collection agency will always accept traditional payment methods, like a credit card or bank account.
8. Asking you to pay at a suspicious or outdoors location, such as a park or parking lot.  A real collection agency does not typically accept in-person payments outside of their regular place of business.
9. Declining to give you their name, company’s name, supervisor’s name, or a mailing address for payments.
10. Describing their business as something other than a collection agency (ex. “pre-collections” or “settlement team”), despite asking you for a payment.
11. Saying or implying that they are a police officer, sheriff, deputy, constable, etc.  Law enforcement officers are prohibited from working as debt collectors in Arkansas.
12. Insisting on a large payment immediately.  Real collection agencies will usually accept even a small amount.
13. Continuing to contact your workplace, friends, or family members after talking to you.  Collection agencies are allowed, in their initial effort to reach you, to call people that you might know.  But once they’ve talked to you, a collection agency isn’t allowed to talk to any of those other folks without your permission.
14. Continuing to contact you after being told that you refuse to pay the alleged debt.  Legit collection agencies are required to stop communicating* with a consumer who says they refuse to pay.  (*They might still sue you, but they have to stop calling.)

None of the above items can guarantee that you’re being scammed.   Even fully licensed and legal collection agencies can make errors, hire jerks, have bad days, or receive wrong information. If you think a collection call might be a scam, ask questions and make your best judgement.  (Fraudsters hate answering questions!) And feel free to contact our office during regular business hours if want to be certain whether a debt collector is registered with a licensed collection agency.

When can a creditor send my account to collections?

Most creditors send an account to collections only as a last resort, because they’ll get paid less after the collection agency takes its “cut”. Still, some creditors may choose to employ a collection agency sooner than others. Many companies consider an account delinquent after 60 or 90 days, but it is up to each creditor to decide when to refer an account to a collection agency.

A collection agency “hit” my credit report!  When is a collection agency allowed to report my account to a credit bureau (Equifax, etc)?  A collection agency must contact you by at least one of these ways before sending your information to a credit bureau:

1. Speak to you on the phone, or in person; OR
2. Mail you a letter, and then wait (usually) 14 days; OR
3. Send you a text, email, or other electronic message, and then wait (usually) 14 days.

Once they’ve completed at least one of those steps, a collection agency is allowed to “furnish” your credit report, even if you did not respond or reply. Many collection agencies will delay “hitting” your credit if you have agreed to a payment plan and are making regular payments. 

But I don’t want to talk to a rude, disrespectful debt collector! 

Collectors don’t have to be friendly, but they’re not allowed to be abusive. State and federal rules call for debt collectors to speak to consumers with courtesy and respect. And collection agencies that make a habit of breaking those rules can be (and do get!) fined and sued. Also, the free market incentivizes debt collectors to behave in a considerate and professional manner. After all, a collection agency or debt collector who treats consumers with respect is much more likely to collect payments (and thereby stay in business!)  than one that’s consistently rude to people.

But if you would just prefer not to talk to a person, many collection agencies are happy to communicate by text, email, or traditional paper mail. Just ask.

What if I’m certain this alleged debt is not my responsibility?

How can I stop a collection agency from calling me?

State* plainly that you refuse to pay.  Or, you can tell* them that you do not want to receive any further communications.  A collection agency is supposed to then stop contacting you. The collection agency (or the creditor) might still file a lawsuit against you! But the law requires them to stop calling. 

*Some collection agencies may ask you to submit this statement in writing. Many of these will accept a text or email, but a few may require a mailed letter. If they do, be sure keep a copy for your records. You may also want to consider using certified mail with a return receipt.

Can a collection agency take me to court, without even trying to collect first?

Yes. Lawsuits are often slow, complicated, and expensive matters, so most collection agencies only take legal action as a last resort. Even so, some may decide to file a lawsuit sooner.

I’ve heard there is a “statute of limitations” on certain kinds of debt. Does this mean that I don’t have to pay an old account? 

That depends. Arkansas law protects against creditors waiting for years before they start trying to collect a debt. But that doesn’t mean that a debt disappears just because a consumer avoided making payments for a long time. You should speak to an attorney if you think one of these time limitations might apply to your situation.

What should I do if I’ve been sued or served a court summons about a debt? 

What should I do if a collection agency is trying to garnish my wages? 

What should I do if a collection agency is trying to renew a court order?

You should speak to an attorney.