It really depends on the company and how much is on the account. Some companies have their own collections departments, others sell off the debt to third parties. Which ever happens expect daily phone calls and harassing letters until you speak to them and agree to make payments. For Canada, collection agencies are only allowed to call your work to verify you work there, but are not allowed to disclose debt information unless a court order is in place (see later). In Canada the account gets changed to an unpaid debt on your credit report. This will cause you big problems if you are wanting credit. This can last to around 6 years on the report. Depending on how aggressive your collection agency is they can even go after your wages with a garnish order. This means your employer gets notified of the details, which has obvious consequences. It may mean that you loose your job if you are in a trustworthy position or prevention from promotion in the company. I know first hand how this can happen from personal experience in the past... this is way behind me now, and I learned the hard way. The first thing you should do is call the company right away. DO NOT put this off. Explain to them that you are struggling and will make some sort of payment soon. Quite often you can negotiate payments with them, and this can also change your credit report. If you would like some advice on what to do and you are in Canada, you can find us on www.linkcreditsolutions.ca We give honest advice, but it is up to you to act on it.