If people owe a debt to creditors, and haven’t paid up yet, then there is a chance that they will be contacted by a private debt collection agency. This is to ensue that these loaners will pay up if they haven’t been contacting the creditors yet. But what exactly happens in a private debt collection agency? Will they harass you or prod until you pay up? You may be afraid of what’s to come if you owe an amount of money and still haven’t paid yet. If you’re expecting to be contacted by a private debt collection agency, here are some things you should know.

What to Know in Private Debt Collection


  1. These are private debt collectors who would contact you if you owe IRS an amount in tax, may it be for your business or what not.
  2. They will first contact you by letter, notifying you of your late payment and giving you the information you need to pay up.
  3. If you are not able to pay right away and have contacted the collectors, then you will be given an installment term of up to 5 years, depending on how much you owe.
  4. Remember that you should NOT pay a debt collector directly, as they are not allowed to accept direct payments.
  5. If you have a large tax debt, then you may not be able to travel, as the IRS can revoke your passport as per the law.


There are other rules when it comes to tax collection, and you must know the restrictions tax collectors have and if they are even allowed to collect the debt from you. You can search online for more information regarding private debt collection and what your right are as a debtor.

What To Know About Private Debt Collection

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