Complaints surge as bill collectors get tough

[Amerigo Vespucci]

NEW YORK (AP) -- After several years in which Americans were buying stuff on credit they couldn't afford, a rapidly increasing number are complaining about getting harassed and abused by bill collectors.

Nearly 71,000 people filed such complaints with the Federal Trade Commission last year, roughly double the number in 2003. In addition, more than 14,000 complained to the Better Business Bureau. Thousands more lodged grievances with state and city officials.

"And it is going to get worse," warned David Polino, a Better Business Bureau expert on collection agencies and president of the BBB chapter in upstate New York. "With the recession, with the horrible credit problems, this is going to be off the charts."

Regulators and consumer groups say the rise in complaints reflects the rapidly increasing number of Americans who took on more debt than they could handle during the free-spending, easy-credit days that preceded the current economic crisis. The complaints are also being attributed to the explosive growth in the number of companies that buy up bad consumer debt at a discount and try to collect whatever they can.

U.S. law allows creditors to take aggressive steps to collect a debt, including going to court to freeze a debtor's bank accounts. But there are also rules: They may not call before 8 a.m. or after 9 p.m. They may not repeatedly use the phone to annoy you. They cannot curse or threaten to have you arrested. They cannot lie about the likelihood of legal action, or tack on unwarranted charges.

People who owe money are often themselves rude and abusive to bill collectors, use obscene language and hurl death threats. But under the law, bill collectors are not allowed to respond in kind.

Nearly 39 percent of the people who complained to the FTC last year accused an agency of either demanding a larger payment than legally allowed, or seeking money they didn't owe at all.

Bob Silvers of San Jose, California, said a company called Bay Area Credit Service has been hounding him over a disputed $60 ambulance bill from 2002 by bombarding him with calls that begin early in the morning and sometimes continue all day.

"I get between three and nine calls a day, six days a week," said Silvers, who claims the agency has ignored his demands to stop calling. "It's just constant harassment."

A spokesman for Bay Area Credit said he was unfamiliar with Silvers' dispute, but said it is against company policy to use the telephone to browbeat people.

http://www.cnn.com/2008/US/10/30/debt.collectors.ap/index.html

[ailsagirl]

1. I'm surprised debtors prisons haven't been reactivated

that's something bushco would do

:puke:

[SoCalDem]

2. The ability to "sell debt" is at the heart of all our problems

Back in "the day", a merchant "held" his own paper, and if a person burned a merchant on paying a bill they got NO MORE credit, and the property was repossessed (if possible)..

Big-time credit-vendors came along and removed the "messy" part from the merchants, for a fee, and our national nighmare was hatched.. It's now a full grown , hungry monster, and is devouring our economy.

if a bank had to hold a 30 yr mortgage, they were mighty careful about the people they loaned to..same for a car dealer who was about to let you drive one of HIS new cars off the lot.

Once they had the ability to "sell the debt", they no longer cared that much about whether you paid up or not, because they had passed the hot potato (YOU!) off to another person. Of course the prices had to escalate so he could cover the fees paid to the "potato buyers", and everyone who paid religiously got tagged for the higher prices too.

[depakid]

3. Mr. Silvers might be surprised to know that his alleged debt is beyond the statute of limitations

by several years, and that he has remedies easily available in small claims court that could net him some money if he jumps through a couple of hoops!

What Remedies Are Available If The Debt Collector Violates The Law

Under the Fair Debt Collection Practices Act, you have the right to sue a debt collector in state or federal court within one year from the date of the violation. If you win, you may recover damages in the amount of any losses you suffered as a result of the violation, plus an additional amount of up to $1,000.00. You may also be able to recover court costs and attorney fees.

http://www.expertlaw.com/library/consumer/fair_debt_collection.html

[Howardx]

4. Debt Validation: The ultimate weapon

Debt Validation: The ultimate weapon against the collection agencies

"You could try to use debt settlement methods with a collection agency, but you might want to try debt validation first. Why? Because they may not even be legally entitled to collect the debt from you."



http://www.creditinfocenter.com/rebuild/debt_validation.shtml

a mere mention of this stops calls.