Can a collection company threaten to take your car?

Yes they can. Whomever you owe money too, sit down and start writing those letters to one or more companies you owe the money. Explain your circumstances, then send the letter(s) Registered Mail (this means someone at the Company such as the Accountant will have to sign for your letter) and be sure to keep a copy of the letters you write. Make a good effort to pay what you can afford. If you pay $10 - $20 on a credit card debt and have written the company they can't legally do anything about it. You can also have them lower their interest rates! Marcy No they cannot threaten any action whatsoever, as stipulated in the FDCPA. Any collection agency that alludes or actually threatens a consumer/debtor is subject to being fines and other penalties. Such action should be reported to the involved party's to the justice department of the state attorney general office.