Telephone Calls

• Collection agencies may call you repeatedly in an effort to collect a debt. They may also call your friends, family members and place of employment in an effort to find you.
  
  

Debt Settlement

• Collection agencies commonly offer a reduction of the debt you owe in exchange for payment.
  
  

Threats

• A collection agency representative may threaten to place a lien on your home or car if you do not pay a debt. This is illegal, but unfortunately it is also very common.
  
  

Credit Reporting

• A collection agency may report its ownership of a debt to your credit report and damage your credit score.
  
  

Lawsuits

• A collection agency may file a lawsuit against you in the hope that you will not respond. If you do not show up in court, the collection agency will be awarded a default judgment to collect the debt. In some states, this can result in wage garnishment.