With the average household debt in the US is quoted a t over $10,000 no wonder debt is now a major issue for many people. This debt along with business debt has created a monster of an industry that feed on peoples misery. Some may say that it is simply demand meeting suply but others may say is lax regulation that is at fault.
The debt industry is a highly lucrative and cut throat market. This has led to some highly dubious practices. Take the example of falsely accusing individuals of owing money where they don’t in the case of Lisa Burk accused by Allied Interstate of being the same person as Lisa Stern. Even with all the protestations, Allied went on to accuse Lisa Burk of knowing were Lisa Stern is even if she wasn’t the accused. This case was only resolved with the intervention of the attorney general after Lisa Burk filled a lawsuit.
There are similar cases to this all over the country. The reason for such persistent practice is that a lot of profit can be made from collecting old debt. Old debt can cost a collector less than a $1 for each $100 so there is significant possibility that a debt collector will make something is the manage to squeeze anything out of you.
How can the average person protect themselves from such dubious debt collection practices?
You need to know your rights and what limits to what debt collectors can do.
Find out who the debt collector is. Name and Address
Contact the debt collector – do not shut them out. Write to a certified letter
Find out the exact details of the debt you are said to owe.
Dispute the debt
Contact Regulators if your dispute is rejected
File a lawsuit if all fails
This practice is so bad these days. I get practically a call a week from these low lifes. Something has to be done about them.
I thought i’d be the first poster. Just to concour with Shaun, solid steps need to be taken at the national level to deal with these guys.