Aggressive collection practices get scrutiny
October 29, 2009 | federal legislation, industry | Comments (0)New GAO Report out. From the story:
There are many scrupulous debt collectors that compassionately work with borrowers to get them to repay what they owe. But there are also bottom-feeders in the industry that resort to any means necessary, harassing and intimidating consumers to pay up on accounts for which the collectors have paid pennies on the dollar.
The reform can’t come soon enough. Debt defaults are at the highest level in 18 years. About 6.6 percent of credit card holders were 30 days or more past due in the first quarter of 2009. In 2008, credit issuers had more than $23 billion in unsecured debt that was between 30 and 180 days delinquent.
A new report from the Government Accountability Office calls for major reform to the law that governs how companies collect old debt from consumers.
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