Abusive Debt Collection Tactics on the Rise
The Federal Trade Commission reports receiving more than 45,000 complaints about debt collectors in the first half of this year, up almost 20 percent over the first six months of 2008.

December 21, 2009 /24-7PressRelease/ -- Abusive Debt Collection Tactics on the Rise

If you have fallen behind on your bills, it's possible that you have heard from a debt collection agency. It's also very possible that you couldn't believe the threats you heard when the collector called.

CBS News says the Federal Trade Commission reports receiving more than 45,000 complaints about debt collectors in the first half of this year, up almost 20 percent over the first six months of 2008.

Common complaints from harassed consumers are that they are berated, insulted, harassed and threatened by the collection agencies. Some agencies are accused of demanding payment for non-existent debts, or substantially inflating the amounts owed on real debts. Some debt collectors pose as law enforcement officials, threatening consumers with arrest, seizure of their house -- even threatening to take away their children.

Too often, frightened consumers authorize withdrawals from their checking accounts or send money orders overnight in efforts to make the threats stop. Some have even paid off debts they never incurred.

If you have fallen behind on your bills, you should know the facts about the debts you owe and the threats you might hear.
-"If you don't pay this now, we're going to have you arrested." Wrong. Absent a court order, non-payment of a debt is generally a civil matter, not criminal.
-"We're going to garnish your wages." Almost always a hollow threat. Your wages can only be garnished if the creditor has won a judgment against you in a lawsuit.
-"If you don't pay this bill, we're going to take your house." Again, it isn't that simple. Unless the relevant debt is secured by your home with a mortgage or home equity loan, the creditor can't just take your home. In some jurisdictions, however, a creditor that has won a judgment against you in court can obtain a lien on your property, which they can then sell to satisfy the debt.

Debt collectors must stay within the guidelines of the Federal Fair Debt Collection Practices Act. It states, among other things, that if you notify the collector in writing that you refuse to pay the debt or want communications with the collector to stop, the collector must stop contacting you.

Talk to a bankruptcy attorney about your rights and the protections that bankruptcy can provide.

Press Release Contact Information:

Clark Law Offices
Clark Law Offices
Arizona Bankruptcy Lawyers
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Phoenix, Arizona
United States 85016
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