Debt Collection Territory

[Anonymous]

thanks

[Anonymous]

It depends entirely on which collection agency you are worried about.

Some agencies, especially smaller ones, are only licensed/bonded in their home state or in nearby states.  These cannot "chase" a debtor into another state or outside of their license/bond area, so they typically will return a file to the original creditor for reassignment to someone who can.

Other agencies, especially the larger "famous" ones like PRA or Midland, are licensed/bonded in many states and can freely pursue debtors as long as the state the debtor is in is one of the ones where they are licensed/bonded.  They will retain local counsel if they need to file a suit.

Most larger creditors work with a network of collectors, so that they have the entire map covered by one agency or another for collection activity.

Smaller creditors may not have such a network, and may choose to just charge off debts for consumers who have moved outside their area.

[RonM21]

I agree, I think it depends on the agency and where their limits are. I'd get more info on the agency you are concerned about to see where they fall.

[Anonymous]

thanks

[Anonymous]

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@Anonymous wrote:
Sorry, I am the collection agency. I'm a new, small business and I can't get a straight answer from the State of IL. So, if someone has a debt created in IL and moves to a new state they cannot be chased or held accountable for that balance? No demand letter or phone calls?
I have a company that wants to hire me for debt collection services but they are in CA and WI. CA has lenient collections laws and doesn't require a license or bond. Would I be able to work with this company despite only being licensed in IL? The state of IL said it depends on laws in Thwir state and not ours but I wanted second opinion as they have given me incorrect info before.

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So your a CA, asking us how to help you track down and collect? Are you kidding?

[Anonymous]

thanks

[Anonymous]

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@Anonymous wrote:
No, I am asking other CA if they are familiar with laws regarding collecting out of state. These are CA offering information and I was directed here. Don't want to answer, then don't. That simple.

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So CA's are telling you to come here and ask these questions? I think you're in the wrong place.

[Anonymous]

I'm just curious, do you have any collection accounts on any of your credit reports?

[Anonymous]

I do have reports on my credit. I got into the collection business to change the way it's run. And if I am in the wrong place my apologies. Many of the people responding to your questions are CA by the way. That's why I was directed here. I also have been providing info to debtors on how to settle w agencies. Using what I know from the business to provide info to debtors. Didn't realize I couldn't ask other CA questions on an open forum. 

[Anonymous]

I'll take my questions elsewhere. Thanks