Aggressive Debt Collection Strategies are Drawing Regulatory Scrutiny

by San Antonio Attorney

Tough economic situations have helped millions of U.S. consumers to fall deep into debt. Many are dealing with unrelenting collection agents, aggressive collection lawyers and businesses that profit a great deal if they get consumers to pay up.

One of the factors why debt collection has become a multi-billion industry is the obsolete and inadequate regulations. More and more consumers have fallen behind on their bill payments for student loans, credit cards, medical expenses and other expenditures.

Underwater mortgages and job losses also made it harder for a lot of people who are already having difficulties in paying their bills and debts.

Federal regulators are beginning to take some action against debt collection companies who are employing aggressive tactics, which the authorities said are becoming widespread.

Such tactics include distressing phone calls, harassment of debtor’s family members and neighbors, baseless threats of arrest, and a variety of lawsuits geared towards getting payment for unpaid debts from home equity or salaries. In 2010, about $55 billion in debts had been recovered.

Encore Capital Group Inc., which purchases delinquent accounts from businesses, has been sued many times by private lawyers and state attorneys general for allegedly using fake and flawed affidavits, just like the banks allegedly robo-signed in foreclosure documents.

And Brachfeld Law Group in El Segundo, a debt collection law firm which is also based in California, has been facing charges that it did not check the information properly before it pursued some debts. According to the law firm, it checks the accuracy of facts.

But in one case, Brachfeld allegedly assisted in pursuing the wrong person. They haunted the person for a debt he did not owe.

For those who really owe money, dealing with aggressive debt collectors can be a disturbing and horrifying experience.

 

– Credit card companies are often very ruthless in collecting debt, regardless if you owe them or not. It is possible that your old account was sold to a debt buyer and that they may not know you already paid for it. Maybe your credit card was stolen and someone was using it under your name. Whatever the case, a San Antonio Attorney can help you fight an aggressive debt collector.

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