The Ugly Side Of Debt Collection Companies
Debt collection harassment often takes ugly turns with debt collectors resorting in sleaziest techniques. If you were to think that debt collectors are a set of sophisticated lot, it is time to reconsider our feelings. In what can be termed as a spine chilling incident, a debt collector operated despite being in prison.
Lamont Cooper from New York owns Legal Action recovery, a debt collection agency, Legal Action Recovery known to be a professional debt collection firm, served term in prison. The chilling fact was that not only did this collector and his collection agency resorted to terrible tactics, but he continued business as usual from prison.
Prison surveillance showed that he corresponded with his employees and demanded to be informed of all banking activities. The New York Attorney General's office filed charges against him for continuing business from prison. He will be arraigned after he is discharged form federal custody.
A reporter of a news paper turned debt collector for three months to understand how this business works. His confessions include how unpaid bills are considered a boon by debt collectors. His stint at the collection agency taught him some hard truths. Motivated strictly by cash, collectors manipulate, shame and threaten people into paying, without caring whether the bill is legitimate. If they do not do this, their superior takes them to task. The cash benefits of collecting are huge and encouraging enough for collectors to use unethical means.
Debt collection is a massive industry where each debt collector is trained in collection tactics. Each one of them makes roughly 150 to 200 calls per day. They are taught to pose as para legals, give financial advice should the debtor opt to settle, try harassing techniques and so on. At the end of the day a collection agent has to complete his task of making those many calls and strike deals.
Typically debt collection training requires a debt collector to be polite, well mannered over phone, handling the conversation and closing the call on a pleasant note. But the real debt collectors are far from this description. They use abusive and illegal methods and end up violating the Fair Debt Collection Practices Act (FDCPA). The FDCPA was established to ensure fair debt collection and is enforced by the Federal trade Commission and private litigants.
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The Al Franken Act demands a prohibition on collectors from seeking a warrant for the arrest of a debtor. A very big number of debtors face arrest charges and imprisonment because debt collectors unlawfully get them arrested.
Students from both private and public universities all over the country may also provide low cost or free advice. The sessions will only achieve directing clients to the right legal path in filing the right papers. Note that with the new bankruptcy laws taking into effect making the bankruptcy filing process more difficult than usual, an experienced bankruptcy attorney will be worth your money.
Many people who enter the bankruptcy process worry about the fate of their credit. This is actually unnecessary as the bulk of credit damage happens before the bankruptcy process is even initiated. While no one wants the added hassle of rebuilding their credit after resolving debt troubles, doing so can put you leaps ahead of others in the credit game.
Americans are now filing Chapter 7 or 13 Bankruptcy to get their debts under control. Bankruptcy in itself is designed for debt elimination. Chapter 7 bankruptcy functions to cancel out unsecured debt such as utility or medical bills, credit card, etc. Chapter 13 Bankruptcy on the other hand is designed to give individuals more time in repaying all their debts.
Filing for bankruptcy is good news whenever you are struggling with your credit card debt, mortgage or medical bills. Bankruptcy laws help families and individuals in their debt struggles. You have two options on how to deal with your debt problems, Chapter 7 (debt elimination) and Chapter 13 (reorganization). Always remember that you can regain credit again after successfully filing your bankruptcy.
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