Can a collection agency sue you in court?

A collection agency cannot file a lawsuit against a debtor.

The agency can refer the account to a collections attorney who is licensed to practice in the state where the debtor resides, and that attorney can file a suit against the debtor.

Some collection attorneys or firms are also licensed to arbitrate accounts, which means the account is sent to the National Arbitration Board rather than the use of standard civil lawsuit procedures.

Actually - a collection agency CAN sue you in court, IF the collection agency owns the account. However, you are correct, they cannot file a lawsuit against a debtor IF they are acting on behalf of the original debt owner, i.e., Sears, JC Pennys, etc.

Most collection agencies, who actually OWN the debt account, purchase these things at very small costs ... as the original folks have written it off their books. Therefore, if they do take you to court, most likely, it will be small claims court...

Debt collection, inlight of credit cards, etc., is actually a CIVIL matter and NOT a criminal matter.