Little Relief from Debt Collection During the Holiday Season

It should come as no surprise that, according to the Wall Street Journal, that complaints are pouring into federal data bases about debt collectors. 

Although federal laws such as the Fair Debt Collection Practices Act, are
designed to curb certain actions in the debt collection industry allegations of
abuses by collectors are increasing at an alarming rate.  Just a few of the most commonly reportedabuses include:

• Late night or early morning calls,
• Threats to file criminal charges
• Threats to take the money from a  bank account or paycheck before a
  judgment has been rendered
• Profanity
• Improperly contacting neighbors or relatives and disclosing
  information about the nature of the call
• Calls to an employer after being informed that calls are not
  allowed,
• Repeatedly calling and hanging up
• False or misleading information about the nature of the debt

As consumers struggle under a mountain of debt and one out of every ten Americans is out of work the collection industry has stepped up efforts to obtain payment from indebted Americans. We all know someone, a
friend, relative or former co-worker who has been effected by the recession and
the loss of employment. 

As banks and other financial institutions continue to dole out multimillion dollar salaries and bonus to top executives many Americans have chosen to halt payments on unsecured debts as a means of survival.

When it comes down to survival for your family and yourself, sometimes difficult choices must be made. Food and utility bills must be paid first. Next, loans secured by home and auto must be addressed. But, when it comes down to depriving your family of basic needs in order to make a payment on an unsecured credit card, tough decisions must be made.

While credit collectors are allowed to contact consumers about making payment there are times when all the convincing conversation by the collector cannot extract “blood from a stone.” At this point some collectors cross the line. 

When you or someone you know has been the victim of abusive behavior by a debt collector necessary actions must be undertaken. The original creditor should be notified in writing. A Federal Trade Commission (FTC) complaint can be filed on-line. The local consumer protection agency or Better Business Bureau can be
contacted.

Complaints filed with the FTC by consumers against debt collectors have
risen by 17 percent so far this year and are likely to continue to increase. While the FTC does have enforcement capabilities such as fines and demands for reimbursements to consumers only a very small portion of the consumer complaints filed on the FTC web site are ever investigated.

Unfortunately, the holiday season provides little relief in the collection business as automated letters, reminder e-mails and predictive dialer systems take no holiday and many collection call centers remain open and in full operation during much of
the season.

- PATRICK INGEGNO can be contacted at inner-circle@optimum.net.