In the “not so surprising” news category, a new report rips the debt collection industry. This report, however, goes a step further. The report suggests that states are not doing enough to help struggling consumers. The report from the NCLC, states that the best states are only earning a B+ grade while some states get a D-.
The gist of this 44 page report is that the debt collection industry is not doing anything to help consumers. Rather, the industry forces consumers into poverty by not working with them, by emptying out bank accounts, by forcing families to lose their only means of transportation. And, this report is right.
I understand that when someone gets behind on their debts, a debt collector can help a small business, or even a big business, collect their money. The most successful debt collectors should be working with consumers to set up a payment plan that works for everyone. However, at least twice a week, I get a call from someone who goes to get money from the bank and finds out that a levy was executed on their account and they have never even been served with a lawsuit. How do I know this? Because when we get the proof of service, its at the wrong address or for the wrong person.
The 2nd part of the report findings is also correct. States need to do more to proteect consumers and enforce their laws. Too many times, a debt collector can find a loophole to get out of their legal obligations. These loopholes need to be closed.
Don’t despair, fine consumers of the world. There is help out there. Just make sure you find someone who knows this area of law and can assist you.