If an account is forwarded to a collection agency, what is the expected action regarding further collection attempts?

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Multiple Choice

If an account is forwarded to a collection agency, what is the expected action regarding further collection attempts?

When an account is handed off to a collection agency, the lender stops direct collection attempts and lets the agency handle all further contact. This prevents duplicate efforts and potential regulatory issues, since only one party should pursue the debt at a time. The debt remains active and will be pursued by the collection agency through its established processes. Continuing in-house attempts would clash with the handoff, raising confusion and compliance risk. Increasing the balance or filing a complaint aren’t relevant actions in the handover context.

When an account is handed off to a collection agency, the lender stops direct collection attempts and lets the agency handle all further contact. This prevents duplicate efforts and potential regulatory issues, since only one party should pursue the debt at a time. The debt remains active and will be pursued by the collection agency through its established processes. Continuing in-house attempts would clash with the handoff, raising confusion and compliance risk. Increasing the balance or filing a complaint aren’t relevant actions in the handover context.

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