Debt collection is a big business that doesn’t look to be shrinking anytime soon. But along with the rapid expansion of the industry, there has been an increase in abusive and predatory collection practices. One of those practices, obtaining default judgements against consumers, has led the Center for Responsible Lending to call for stricter regulations over the process of selling debt to collectors.
A new report [PDF] from the Center for Responsible Lending highlights how a lack of regulations over the debt buying and collection industries has become a billion dollar business while financially devastated consumers.
Nearly one in seven Americans are currently being pursued by a debt collector, but most of the debts being sought aren’t even owed. How can collectors be hounding consumer for debts that simply don’t exist anymore?
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DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
3 comments:
Most companies will send up to 3 statements to you before sending a person to collections, where I work they send 3 as well but it's not consistent it could be 2 or 3 months in between each statement, so people have plenty of time to pay their bills or even make an attempt, but they don't. And when they get sent to collections that's when they call us "oh I didn't know I owed anything". We give people plenty of chances to pay their bill, we will even set them up on monthly payments even on balances as low as $50. We would much rather settle in our office than to send a person to collections.
And all this gambling doesnt help.
We used to have "Debtors Prisons" in this country, then they were outlawed, but now in the 21st. century, they arrest you and put you in jail for owing a court ordered judgment!
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