Debt Collection Violations Rampant

February 2, 2007 - 20:34 by rwaple

ABC’s popular television show 20/20 ran an interesting investigative report exposing the sometimes abusive and illegal practices of debt collection. The report featured recorded abusive debt collection phone calls and exposed the often unethical practices of the debt collection industry. These recordings can be heard at ABC News.

It came as no surprise to me to hear some of the abusive language and illegal tactics used by debt collectors. Over the years, I’ve heard countless similar stories from my bankruptcy clients who are often hounded on a daily basis for debts that they simply cannot afford to repay. Often, it is these abusive phone calls that motivate people to file bankruptcy. To be fair, some debt collectors are courteous and act in a professional manner, but clearly something needs to be done to clamp down on the rampant abuse throughout the industry.

Consumers do have protections available for violations of the The Fair Debt Collection Practice Act (FDCPA), but the damages are often statutorily limited to as little as a $1000 for violations. To most large collection agencies, the potential fines are so small compared with their profits, that they don’t have the motivation to make fair and ethical practices a priority.

In my opinion, Congress needs to impose tougher fines and increase the statutory damages limits. They need to send a message to the debt collection industry that unethical or illegal collection methods will not be tolerated. Only then will consumers receive enough protection to rest assured that they will not be illegally harassed by debt collectors in their time of financial distress.

Rich Waple
Attorney, BankruptcyHQ

WP Solutions, Inc is a BBB Accredited Legal Information Service in Chicago, IL

Free Legal Evaluation

 
Why are you considering bankruptcy? (select all that apply):
Estimate Total Debt:
1 of 5 steps
 
What bills do you have?
Estimate Total Monthly Expenses:
2 of 5 steps
 
What types of assets do you own?
Do you own real estate?
If Yes, are you behind in these payments?
Do you own an automobile?
If Yes, are you behind in these payments?
Do you have any additional assets worth more than $100,000?
If Yes, please describe:
3 of 5 steps
 
What types of income do you have?
Estimate Total Monthly Income:
4 of 5 steps
 
Contact Information:
First Name* :
Last* :
Home Phone* :
-
-
Work Phone:
-
-
Cell Phone:
-
-
Email* :
Zip* :
5 of 5 steps



WP Solutions, Inc is a BBB Accredited Legal Information Service in Chicago, IL

Free Evaluation Form

Free Legal Evaluation

 
Why are you considering bankruptcy? (select all that apply):
Estimate Total Debt:
1 of 5 steps
 
What bills do you have?
Estimate Total Monthly Expenses:
2 of 5 steps
 
What types of assets do you own?
Do you own real estate?
If Yes, are you behind in these payments?
Do you own an automobile?
If Yes, are you behind in these payments?
Do you have any additional assets worth more than $100,000?
If Yes, please describe:
3 of 5 steps
 
What types of income do you have?
Estimate Total Monthly Income:
4 of 5 steps
 
Contact Information:
First Name* :
Last* :
Home Phone* :
-
-
Work Phone:
-
-
Cell Phone:
-
-
Email* :
Zip* :
5 of 5 steps
Family Portrait
About BankruptcyHQ