Can a collection agency make threats?
Question Details:
Is it legal for a collection agency for an insurance company to ask for a percentage of the total amount as a down payment, and threaten that if you do not pay that amount immediately that they will take your and the vehicle owner's licenses away? Also is it legal when the police report said none were at fault? Our insurance had cancelled at 12:01 on Sunday and we didn't receive the letter till Tuesday and the accident happened at 5:30 p.m. on Monday.
Although you do not come right out and say it, I am assuming that you were in an accident and did not have insurance at the time. I am also assuming that it is the other driver's insurer that is insisting upon payment and that otherwise they will take your license away. They of course cannot take your license away. They can report you to the Bureau of Motor Vehicles for not having insurance and then the BMV can suspend your license for not fulfilling the financial responsibility law. The police report has no legal effect, whatsoever, especially if the officer did not witness the accident.
If this is your first time, absent an agreement with the insurance company, your license will be suspended for 90 days. You will have to pay a reinstatement fee and show prrof of insurance when you reinstate your license.
Collection agencies are able to make accurate representations of fact that are supported by the law. I am not sure from your email as to what happned here. Did you get into an accident? why are you being asked to pay a percentage of money. Is the collection agency asking for a payment to reimburse the insurance company for a claim that it had to pay out? Generally, the state, not the collection agency may take your license away. The collection agency should not be telling you that they are going to have your license suspended. With respect to the police report, often times the officer is not able to determine fault. It is perfectly legal for the officer to not know who was at fault - that is what a trial is for. Perhaps you can reask your question and I can try to answer it.
