Businesses slide into recession, but debt collection booms

There are a growing number of US debt collection agencies jumping on the bandwagon of growing insolvency problems in America. This ever growing army of debt collectors is chasing an increasing number of people who owe an equally ever increasing amount of dollars.

With this surge in new debt collectors has come an equivalent surge in complaints about the activities of those agencies. Figures from the Better Business Bureau are expected to show a continuing upswing in complaints about agencies and their practices.

This increase in complaints has been noted for the last few years. Two years ago in 2006, the number of complaints against debt collectors went up 21% on the previous year. The Better Business Bureau believes that with the US economy going into decline that a new high will be reached in complaints received by the organization.

The bureau deals with many complaints from distraught citizens, as collection agencies make enquiries at the homes of the debtors neighbors. They also contact their friends, and employers making unpleasant remarks in an attempt to embarrass people into paying off their debts.

The Bureau believes that each citizen must take responsibility for his or her own actions. Conversely, they do not believe that these people need to deal with verbally abusive tactics from the agencies.

The law that covers these activities is known as the Fair Debt Collection Practices Act. In addition, under these regulations debt collection agencies have a duty to treat members of the public in a fair manner.

In a recent court case, a federal judge brought down a final order against a debt collector in Florida, who deliberately misled friends and neighbors of debtors. Moreover, made several telephone calls in which they falsely claimed that, the debtor’s homes would be seized and they would have their wages garnished if they did not pay up immediately. This agency was also found guilty of using abusive language and an aggressive manner against the people they were trying to collect debts from.

The case was brought to court by the Federal Trade Commission, in the belief that the debt collectors were in violation of the Fair Debt Collection Practices Act. The law applies to anyone engaged in the collection of debts of a personal and household nature. This would include mortgages, medical bills car loans and charge accounts.

The Better Business Bureau outlines the main points of the act as being. That debt collection agencies must not contact members of the public at unreasonable times of the day, or in unsuitable locations. This would include your place of employment, and calls to any location after 9 p.m. or before 8am.

If you sent a letter to the agency requesting that they stop contacting you, they must do so immediately. The exception to this law is that the agency may still contact the debtor, if they intend to take action of a specific nature. Stopping the debt collection agency, from calling does not mean that they cannot take you to court for the amount owed.

Collection agencies may only contact your employer, relatives or friends to find out the location of your home or workplace; they may not request any further information. They also may not inform these people that you owe money or imply that you are in debt. They are not permitted to use bad language or harass you in any way, including excessive numbers of phone calls.

They may not make any kind of threats, including but not limited to making deductions from your paycheck or threatening to take you to court, they can only inform you of actual impending court proceedings. Many collectors abide by the law, and many adhere to a code of conduct mandated by the Association of Credit and Collection Professionals.

The best way to deal with this potential unpleasantness is to find alternative methods of dealing with any debt problems you might have. Although the collection agencies are not legally allowed to harass you, they are permitted to take you to court, and make legal applications to regain the money that is owed.

The best alternative may be to seek out debt consolidation refinance on your home to clear you debts and reduce them to one low monthly amount that will be much smaller than all the debts you have at the moment. You can contact an online advisor to discuss your needs, and he should be able to deal with any debt collection agencies on your behalf.