Wednesday, July 14, 2010, AM | 1 Comment
Federal Trade Commission finally realized that the process for debt collection is wrong, immoral and highly unethical. [The three words are mine and not those of FTC.] On its July 12, 2010 blog post, FTC has used the words “some concerns with debt collection litigation and arbitration.” It also said it needs more data [and obviously more time]. In the mean time, the debt collection agencies will have free hand to screw and screw hard the American public who have been obviously unable to pay their debt.
In any case, the process of mustangs being broken has been initiated. We will know, hopefully soon, that they have been domesticated and that they will act and react in an extremely controlled environment. I hope it doesn’t turn into just a wish. I hope FTC means what it says and says what it means.
The main concern is…
Two kinds of entities have been in line to screw the consumers any which way they possibly can, one after the other or sometimes both together, the FTC stated. Well! may be not in those words.
- The debt collectors have been seeking to recover on debts beyond the statute of limitations.
- To put salt on the already opened consumers’ wounds, banks have been freezing funds in bank accounts that are exempt from garnishment by law.
It seems that both concerns are openly illegal but no arrests have been made yet as of this writing. This has been going on God knows for how long, under the supposedly watchful eyes of the government agencies. Why is it that some agencies are following the path of SEC with their eyes closed as if they are blind and they don’t see “nothing”? [But I don’t blame them. They are just acronyms, far from being humans.]
Other concerns are…
There are a few other issues that consumers have been complaining and crying about. According to some critics who seem sympathetic to consumers:
- Lawsuits are sometimes filed against the wrong people.
- The amount owed is incorrect or includes questionable fees and interest that has been added to the balance.
- It’s not always clear if the debt buyer filing suit legally owns the debt, since debt portfolios are often sold several times. [What else is new.]
In a Nutshell
If you owe the money, you should pay it. However, FTC is finally looking into the methodology and the process the debt collection agencies use that are of concern to everyone. Some folks consider their actions immoral, unethical and full of outright lies. But the behavior of some collection agencies is not to be confused with that of the decent law abiding citizens.