Complaints About Collection Agencies Are On The Rise

The proof is in the pudding, and here it is. The amount of lawsuits and complaints about abusive, illegal and strong arm collection tactics that some dishonest debt collection companies utilize to collect has risen quite a bit in the past couple of years. Attorney Michael J. Koopmans, a lawyer who represents debtors who have been wronged weighs in with his input. According to Koopmans, he handles thirty to fifty cases at one time, all of them clients who claim that they have been bullied, harassed, and even threatened by collection companies.

According to Koopmans, this is a period where consumer debt is at an all time high and the economy is at an all time low, and at a time when a lot of debtors can’t afford to pay what they owe in one massive sum, he has noticed that collection agents are becoming less and less willing to work out some sort of a payment plan. “Now the collection agents are claiming they can’t do that” says Koopmans. “They say they’re only going to have this account for a short while, that they need a lot of the money, they need it fast, and they need it up front.”

Deputy Attorney General of Indiana, David Paetzmaann claims that his workplace receives at least a dozen telephone calls every week from people complaining about collection agents who they feel are harassing them. According to Paetzmann, the number of calls has increased by more than twenty percent from just four years ago.

One of the agencies that has received the brunt of complaints is called Premiere Credit of North America. A spokesperson has countered that the debt collection agency has “tough policies, strict guidelines, training, and monitoring against utilizing threats and harassment.” What does Paetzmann suggest? That consumers break out the books and bone up on their knowledge of the Fair Debt Collection Practices Act and the legal restrictions that it puts on debt collectors.

First of all, a debt collector is only permitted legally to call debtors between eight o’clock AM and nine o’clock PM. Additionally, the act also strictly prohibits collection agents from lying to you by claiming that they have the authority to arrest you or seize your property (they don’t). They are not permitted to discuss your debt with anyone else, and attempting to collect a fee for themselves in addition to the amount you already owe is clearly illegal as well.

Mallory Megan works for Rapid Recovery Solution and writes articles about medical collection agencies. Free reprint avaialable from: Complaints About Collection Agencies Are On The Rise.

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Written by Mallory Megan on July 16th, 2010 with no comments.
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