1. Whether the collection company is legal or not needs to be discussed according to different situations:

(1) Collect money reasonably and legally within the scope permitted by law, in which case it is legal to collect money at home;

(2) It is illegal to illegally deprive others of their personal freedom by detention, confinement or other coercive methods.

2. Legal basis: Article 238 of the Criminal Law of People's Republic of China (PRC).

Crime of illegal detention Whoever illegally detains others or illegally deprives others of their personal freedom by other means shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention, public surveillance or deprivation of political rights. Those who are beaten or insulted shall be given a heavier punishment.

Whoever commits the crime mentioned in the preceding paragraph and causes serious injuries shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years; Whoever causes death shall be sentenced to fixed-term imprisonment of not less than ten years. Whoever uses violence to cause disability or death shall be convicted and punished in accordance with the provisions of Articles 234 and 232 of this Law.

Whoever illegally detains another person or detains another person in order to claim debts shall be punished in accordance with the provisions of the preceding two paragraphs.

Any functionary of a state organ who commits the crimes mentioned in the preceding three paragraphs by taking advantage of his power shall be given a heavier punishment in accordance with the provisions of the preceding three paragraphs.

2. Will the collection company sue the debtor?

Whether the collection company will sue the debtor depends on the situation:

1. If there is no authorization, the third-party collection agency can report the case, but it has no right to sue;

2. With authorization, the third-party collection agency can bring a lawsuit to the court instead of the lending institution.