Feds Focused on Ending Illegal Debt Collection Practices
Debt is an issue that plagues a huge number of Americans; nearly 30 million of us have an account in collections. Another issue that plagues Americans are shady debt collectors who rely on questionable or illegal methods for recovering debt. Because of this wide spread problem, The Federal Trade Commission has joined forces with other government agencies to seek out and shut down dishonest debt collection agencies.
The initiative, known as “Operation Collection Protection,” involves the FTC, The Department of Justice, the Consumer Financial Protection Bureau, state attorneys generals from 47 states, as well as state and local law enforcement. The goal is to protect debtor’s rights, and to put an end to “rogue” collectors who break the law.
In 2008, when America was in the midst of an economic crisis, debt collection became a booming business. And with that surge, America saw a major increase in the number of bad debt collecting practices as well. Some of the companies that have since been shut down have employed methods such as attempting to collect on debt that has already been paid, creating fake debts and pressuring people to pay by threatening wage garnishment and arrest, harassing individuals, and pretending to be attorneys. One company even threatened a woman that they would have her children taken away if she didn’t pay the debt. According to the Fair Debt Collection Practices Act, debt collectors are not allowed to threaten harm, use profane language, or call an individual at work.
Debt collector complaints are a huge problem for the Consumer Financial Protection Bureau; the agency received over 280,000 complaints in 2014 alone. There are, no doubt, many more people out there who have had a negative experience with bad debt collectors and have not filed a formal complaint. If you or someone you know is currently dealing with debt collectors, or are facing a debt collection lawsuit, contact an attorney with experience fighting these types of cases. In the Fort Worth and San Antonio areas, Kerry H. Collins & Associates P.C. has helped numerous individuals facing debt collection lawsuits. Contact our office today.
Read original article here.