Debt Collection Agencies Are Breaking the Law

What Happened To The Fair Debt Collection Practices Act?

Many people who get calls from debt collection agencies wonder what happened to the Fair Debt Collection Practices Act. Aren’t debt collection agencies prohibited from abusing consumers? Aren’t they prohibited from harassing third parties to get a consumer’s information? Aren’t they prohibited from threatening to take illegal actions? Sure they are. The Fair Debt Collection Practices Act is alive, but it is most certainly not well. Each and every day, debt collection agencies across the country break the very laws created to control them, and there’s not many people doing a darn thing to stop them.

The Real Face Behind Most Debt Collection Agencies

The average consumer thinks a debt collection agency is a professional company hired by a creditor who is owed past-due money to help them collect the money owed to them. That’s why consumers are so easily intimated when a debt collection agency calls. While there are a few debt collection agencies that conduct business in this manner, most do not. The average debt collection agency is actually a company that buys “charged-off” accounts from creditors who think the account is a hopeless cause. These debt collection agencies usually pay pennies on the dollar for the debt you owe.

These debt collection agencies then hire debt collection agents. Oh what a breed! These “professionals” (and I use that term loosely although there are a scarce few that actually do it right) get fifteen to twenty-five percent of everything you pay the debt collection agency, so of course they have incentive to abuse you until you pay it. In addition to the typical fifteen to twenty-five percent, these agents usually also get bonuses for hitting certain quotas and some of these agents make more than $60,000 a year making debtors pay up.

What To Do

If you think you’ve been abused by a debt collection agency, I highly suggest taking action. The first thing I recommend is visiting the website of a Mr. Bud Hibbs. Bud Hibbs is the foremost expert on dealing with debt collection agencies who employ illegal collection practices. Everything you need to know about standing up for your rights can be found at his website including a database of debt collection agencies to look out for. My favorite page on Mr. Bud Hibbs website is the page that gives an overview of what debt collection agencies and the people who work for them are really like.