August 20, 2009

Debt Collection Arrows

Filed under: Collections,FDCPA,Judgment

Hello Paul –

Sometime ago, I was in a program to settle a debt. Later, I was contacted by Arrow Financial (a collection company). Yes, my account was sold. Arrow Financial requested that I pay more than what the other company had me pay monthly.

I couldn’t meet the payments they were requesting nor could I commit to any type of payment considering the current recession and cut back on my hours at work.

So yesterday, I received a call (at work) from some guy stating that he had a claim from Arrow Financial for $4K+. They are requesting to know if I will pay it or if they will need to file a “CIVIL SUIT” against me.

I was stunned and requested the phone number to call this guy back when I was off work. This sounds like some type of SCARE TACTIC. I may have written down a wrong phone #. When I called it, it was a some other type of service.

My question…can they do this? File a CIVIL SUIT against me?

At this point, I’m not sure what to do. Please help!



Hi Char,

It’s possible that a lawsuit could be filed to collect a debt.  If a lawsuit is filed, then it could be answered with defenses and even counterclaims.  For example, read this mock court transcript.

The reason that junk debt buyers file lawsuits is because most consumers do not respond to the suit.  In this way, the debt collector obtains a default judgment and can then attempt to garnish wages or levy bank funds subject to state law. 

I’d suggest reading up on the Fair Debt Collection Practices Act.  Particularly the parts about communicating with third parties, contacting the employer, threatening to take actions that are not intended to be taken, validation of the debt, etc. – lots of reading for you to do!


Thanks for the questions and hope this helps.


This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.

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