Question:
I am wondering about the powers of collection agencies. First of all, I do not understand how these independent firms are able to hound citizens to pay their debts. If you have a debt with your bank (for instance through your credit card or student loan) shouldn't the bank be hounding you to pay the money back? Second, what happens if you just tell the collection agent to fuck off? What can they do? Is it legal for them to constantly harrass you to pay back your debts?


Answer:
Any of your creditors, including a bank, is free to hire anyone they want to try to collect on a debt, and is free to sell or assign the debt for collection. The agency has the right to try to collect because the creditor gave it the right.
Collection agencies are limited in what they can do. The primary governing rule is the Fair Debt Collection Practices Act. You can look it up in a zillion places on the internet. If you read it and believe that the agency has violated it, then it's your turn to have fun at their expense.
If you tell the collection agent to fuck off, what can they do? They can file suit and maybe win, and then garnish wages or attach assets. But the list of things the agency can do is the same list regardless of whether you tell the agency to fuck off. The alternative is to negotiate a settlement of the debt. Collection agencies are accustomed to receiving offers of settlement, and generally do a good job of negotiating if they get a good faith offer.


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