Complaints Against Debt Collectors Are Rising
As a Consumer Bankruptcy Attorney, I see people on a daily basis who are considering filing for bankruptcy protection. One of the reasons they are seeking bankruptcy protection is to stop the abusive debt collection practices being employed by the debt collection industry. As this country goes deeper and deeper into a recession, with inflationary prices on gas, food and other commodities, more and more individuals will default on their debts. Recently, I wrote an article for the Credit Law Network about the debt collecter's stock becoming hot on Wall Street. The article made me sick.
Here is my take on the issue, and please feel free to give it as much credibility as you wish.
As more people go into debt, the debt collection industry will become more competitive and more unscrupulous. Think about it for a minute. As any industry grows, there will be more competition and higher prices being paid for the portfolios of debt available for collection. Sure there will be more portfolios available as more people default on their debts, but there will be even more debt collectors vying for that slice of pie, thereby raising demand, and accordingly, the prices of the available portfolios. This will have a direct impact on the collection practices being employed by the employees because now the debt collectors are further vested in these portfolios, and therefore, have to make even more money to not only break even, but make a profit. The government has yet to say that we are in a recession, but it doesn't take a genius to see what is going on in the United States. Consumer complaint are rising against the debt collectors already. The statistics being reported by the Federal Trade Commission (www.ftc.gov)
This will lead to even more violations of the Federal Fair Debt Collection Practices Act (FDCPA) by debt collectors and the State Florida Consumer Collections Practices Act (FCCPA). It is important to note that the FDCPA only applies to debt collectors and not an organization that is collecting its own debts. The FCCPA has no such limitation.
If you believe that you have been a victim of debt collection abuse, please feel free to contact the Federal Trade Commission at www.ftc.gov and click on consumer protection and then click on file a complaint.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Mr. Dellutri is a Board Certified Consumer Bankruptcy Specialist, Certified by the American Board of Certification. Mr. Dellutri now sits on the Board of Directors of the American Board of Certification. Mr. Dellutri is also one of the Founding Members of the Bankruptcy Law Network, Credit Law Network, Debt Law Network, and the Mortgage Law Network.
