Has a collection agency contacted you?

What Happens If You Don't Pay Sears Collections?

Creditor
Joe Conlon
Joe ConlonUpdated April 16, 2026
At a glance

If you have an unpaid account with Sears, your debt may be sent to a collection agency.

If you don't pay, Sears usually collects in-house first, then assigns or sells the debt to a collection agency.

Sears can take you to court over the debt, but can't garnish your wages without a judgment first.

A collection can stay on your credit report for six years. You can dispute it, settle it, or get help if you can't pay.

Which collection agency does Sears use?

Consumers have reported being contacted by agencies such as Action Collections & Receivables Management (ACRM) about Sears debts.

These are the collection agencies consumers have reported hearing from about Sears debts. If one of them is calling you, their number is below.

AgencyPhone
Action Collections & Receivables Management (ACRM)1-877-503-9633

Based on consumer reports and public records. Always verify the agency's identity before making any payment.

What happens when Sears sends you to collections

Sears tries to collect the debt themselves first. You'll get reminder letters, phone calls, texts and emails from their internal team.

If you don't pay within 90 to 180 days, Sears assigns or sells the account to a collection agency. The agency contacts you directly from that point. The original debt now shows as a collection entry on your credit report.

You still owe the money to Sears. The collection agency is just the company chasing you for it.

Will Sears collections affect my credit score?

Yes. Once your Sears debt is reported to Equifax or TransUnion, it's one of the most damaging marks on a credit report.

A collection stays on your report for six years from when you first fell behind, then drops off automatically. Paying it doesn't remove it early. It just changes to paid instead of outstanding.

The first thing to do is check your own report and see whether the Sears collection is actually on there, and whether the details are right.

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What to do if Sears sends you to collections

These steps apply to most consumer debts, including credit cards, loans, phone bills, utilities and store accounts.

1

Check your credit report first. See what's been reported there. Check the original creditor (Sears), the account number and the balance. Also check if any collections appear. Get your free credit score and report with Borrowell.

2

Request written verification. Ask the collection agency for the original creditor's name (Sears), the account number, the current balance, the date of last payment, and proof they're authorized to collect. Send the request by email or registered mail.

3

Don't acknowledge the debt while you wait. A payment, even a partial one, or a written acknowledgment restarts the limitation period in your province.

4

Check the statute of limitations in your province. If the debt is past your province's limit, you can defend a lawsuit by pleading the expired limitation period. You have to raise it yourself. Ignore the claim and the court enters default judgment as though the limitation never applied. Check the limitation period where you live.

5

Settle or pay if the debt is valid. Collection agencies sometimes take a lump sum for less than the full balance. Get a letter confirming the agreed amount clears the account before you pay anything, and keep proof of payment.

6

File a complaint if they won't verify or they're harassing you. Your provincial consumer protection office licenses collection agencies and handles complaints about them. It has no authority over Sears itself.

7

Get help if you can't pay. Talk to a Licensed Insolvency Trustee or non-profit credit counsellor.

Which creditors have extra collection powers?

A few creditors have powers beyond the normal collection process. For these, the limitation and settlement steps above work differently.

Government debt is the biggest exception. The Canada Revenue Agency can garnish your wages, freeze your bank account, and register a lien on your property, all without a court order. It can also take your tax refund and federal benefits. Other government debts, like benefit overpayments and court-ordered support, carry similar enforcement powers.

Secured debt is the other case. If the debt is tied to an asset, like a mortgage or a car loan, the lender can repossess or foreclose instead of just suing you.

Toll roads like Highway 407 can block your licence plate renewal until you pay, and the usual provincial limitation period doesn't stop them.

If your debt falls into one of these, get advice specific to that type before you rely on the steps above.

Can you deal with Sears directly?

Sometimes. Contact Sears's billing department and ask if the account can be recalled from the collection agency.

Some companies take the account back if you arrange payment directly with them. Others won't. Once it's assigned, you deal with the agency.

Even if you pay Sears directly, the collection entry on your credit report doesn't disappear. It updates to show as paid, but the record stays for six years in most provinces.

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Other retail creditors

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