• Fair Capital

Is it necessary to notify a debtor before sending them to a collection agency?


People often ask: Is it necessary to notify a debtor before sending their account to a debt collection agency?


Summary: A "creditor" is not required to inform their clients before passing an account to collections. A debt collection agency is responsible for sending an initial demand letter, also known as a “validation notice,” to notify your debtor about their account being assigned to the agency.



When sending a debtor to a collection agency, do you need to notify them?


The Short Answer

Generally, creditors do not have to notify a debtor before turning over a delinquent account for collections.


Courtesy Notifications: A Best Practice

Many people mistakenly believe that a creditor is required to notify them before their account is sent to collections. While this is not the case, it may be a best practice to give notice as a courtesy on their final bill.


Some creditors refrain from giving their customers an extra warning, holding firmly to the position that timely payments are expected. However, avoiding this surprise could help a business maintain a more positive relationship with its customers. A final notice may also result in the payment before collections, saving your business agency fees.

How Are Debtors Notified?

It is the debt collector's responsibility to notify the debtor when their account has been placed for collection. Under the FDCPA, debt collectors must provide written notice containing, among other things, the amount of the debt, the name of the creditor, and certain disclosures about their rights.



Can a debt be sent to collections without notice? Can a debt be sent to collections without prior notice? Do I Have to Notify Patients Before Sending Them to collections?


What information does a debt collection agency need?