Anyone in debt shudders when they think about the dreaded phone call that will inevitably be from a collections agency. Many times that one phone call will turn into twenty, and even worse, an agent may be hostile or even threatening on the phone.
While it may be true that collections agents are trying to collect a legitimate debt, more and more negative attention is being focused on unfair and aggressive policies that some companies have been using.
Some of the more threatening policies caught the eyes of James Caldwell, Louisiana attorney general and Washington attorney general Ron McKenna who have both pledged to make accounts receivable management firms and their owners take more accountability for their behavior.
In fact, Caldwell has already obtained injunctions on January 8th against two collection agencies that were not complying with the standards that have been set for obtaining debt.
On the same day McKenna stated that his office had just come to an agreement with a collection agency that agreed to comply with new restrictions that have been established.
Some of the new rules that these collection agencies must follow include more effective communication, which means that any harassment, , threats, profanity, or intimidation attempts to embarrass the debtor are now out of the question.
With these new settlements, these collection agencies under scrutiny will no longer be able to intimidate debtors through implications such as failing to pay a debt will result in a suspension of the debtor\’s driver\’s license.
Lastly, although it is lawful for these collection companies to report debts to credit reporting agencies, they are no longer allowed to threaten debtors with impairment of their credit rating.
Although it is a fact that collections agencies are understanably trying to collect a legitimate debt, two issues must be brought into consideration. First, People who owe money are just thatpeople, who deserve to be treated with dignity and respect. But almost as important, if a debtor is terrified of a hostile collections agent who calls them constantly they very well may just stop picking up the calls, leaving themselves in debt, and the collection agencies with nothing.
Mallory McGuinness-Hickey writes for debt collection agency Rapid Recovery Solution and does free lance writing about the business world.
categories: credit collection reform,debt collection practice,debt collection help,debt collection legislation,debt collecting,credit collecting,collections services,credit debt collection,debt collection help,debt recovery,Collection Agencies,Debt
Related posts:
- Politicians Say To Collection Industry: Enough Is Enough
- More Complaints About Collection Agencies Are Being Reported
- How To Select International Collection Agencies
- Commercial Collection Agencies Are An Important Part Of Your Business\’ Positive Cash Flow- Here Are Some Reasons Why
- Debt Collection – How Much Time Do Collection Agencies Have To Collect?
