Telephone Contact

• The collection agency has the right to contact any debtor who has not paid the full balance or accepted payment arrangement of the agency or original creditor. The collection agency may contact the debtor seven days a week, between the hours of 8 a.m. and 9 p.m. in the debtor's time zone. The collection agency is permitted to call the workplace of a debtor between the same hours, as long as the debtor has not notified the collection agency that he or she may not receive personal phone calls at work.
  
  

Filing A Civil Suit

• Collection agencies have the right to take a debtor to small claims court and sue for the debt owed. If the court rules in favor of the collection agency, the debtor will have to pay the balance in full or arrange and keep up payment arrangements. The court may rule that the debtor has to liquidate any property or assets she may have to earn the funds to pay the debt owed to the collection agency.
  
  

Contacting References

• Collection agencies have the right to contact any references or neighbors of the debtor, when the agency has been unsuccessful in contacting the debtor. Some debtors change numbers and move, and do not forward new contact information to the collection agency. When the collection agency contacts a neighbor or reference, the agency may not discuss the debt with him, the agency may only collect contact information of the debtor or leave a number for the debtor to reach the agency.
  
  

Bankruptcy

• If a debtor has filed for bankruptcy, the collection agency may not contact the debtor regarding the debt, if the debt is listed in the bankruptcy petition. The collection agency or creditor may challenge the claim in bankruptcy court. The collection agency may not contact the debtor before the courts have ruled on the bankruptcy petition. However, the creditor has a right to contact any third parties of the debt, as long as the original debtor has not filed for Chapter 13, and the third party has not filed bankruptcy.
  
  

Earnings

• When a collection agency has collected a debt, the agency has a right to a percentage of the debt recovered. The original creditor and the agency have established what that percentage will be, and the creditor will have to pay the agreed upon amount. The collection agency has the authority to accept partial or discounted settlements from the debtors when collecting on a debt.