When Debt Collectors Attack
by Eileen McGovern
No, it's not a new special on Fox TV. It's an all too frequent practice by some shady debt collectors - they have the debtor on the phone and the barrage begins. The debt collector starts requesting money immediately, following the demands with threats of property seizure, wage garnishments, and even jail time. The problem is, most people aren't aware of that the moment a debt collector or a debt collection agency begins to use these tactics, they've breached federal law.
There exists a set of federal statues known as the Fair Debt Collection Practices Act. It protects debtors from offensive conduct. Under the Act, a debt collector cannot engage in any of the conduct listed above. If debt collectors are found using any of these tactics, they can be fined under the Act's provisions.
Some of the other practices that are not allowed under the act include the following. They are explicitly not allowed to use profane language. They cannot threaten people under any circumstances. They cannot misrepresent themselves as anything other than a debt collector. They have no legal power to garnish wages. In order to garnish wages, they need a judge's signature.
What many people don't realize is that debt collectors often work for bonuses. Under their bonus structure, they can bring home five figure checks every month depending on how much money they are able to recoup. When people go shopping and are met by that obnoxious salesperson who is looking to make a commission, this is the same idea. That salesperson and the debt collector both make money off of you.
Debt collectors can sometimes work under as much stress to collect these debts as the debtors. Depending on the type of debt collection agency, they may purchase the bad debt and have to try and recoup it as rapidly as possible. There is added pressure involved when trying to collect a debt in this situation.
It's important for consumers to be educated about the legal protections afforded them. Otherwise, there will be unchecked abuses that are completely unnecessary and stressful, not mention illegal. In these stressful economic times, the more help that consumers have, the better.
