Do You Really Owe That Debt?

Debt collectors have a bad reputation of using questionable tactics to collect debt, but now there is an increase of debt collectors trying to collect debt you may not even owe.

Of course it goes without saying that these “rogue” debt collectors need to be stopped. Millions of Americans find themselves in debt, from credit cards, student loans, medical bills and more.  Not surprisingly, organized debt collection operations have grown with the rising debt.  Some of these companies are dealing with so many individual claims that they get very sloppy with their work, including going after individuals for debt that they already paid or never owed.

So how do we make sure that the debt they are collecting is really yours?

           

According to a letter sent by Sherrod Brown, an Ohio Democrat, to Richard Cordray the director of the Consumer Financial Protection Bureau rogue debt collectors need to be reigned in with official action.  The letter explains how “15 percent of [all] American adults had a debt in collection. Some of the debts were legitimate, but an uncounted number were not.”

Often when debt collectors are asked to provide proof of a debt, they refuse to give it to you. So that begs the question of do you pay it? Or do you wait to see what happens?

Some people chose to report the debt collector to the Federal Trade Commission (FTC), and others chose to disregard it. Debt collectors are known for using absurd tactics such as threatening with jail, job loss, ruined credit and homelessness all if you choose to refuse to pay back the debt. In fact, the FTC gets numerous complaints every year, and 40 percent of them are complaints that the debt collector is trying to collect a debt that one does not owe or that the debt is much more than it should be.

In light of all this information, Mr Brown is urging that federal oversight is necessary. Without it, debt collectors will continue to prey on vulnerable consumers. Specifically he “pressed Cordray to require debt collectors to have original evidence that a debt is owed, such as a signed contract, ban the sale of debts without such documentation, and, among other things, prohibit collectors from pursuing old, time-barred debts. “

Having oversight will ensure that consumers are not being targeted, and if they choose to repay their debt that they will know it is legitimate.

Another reason oversight is needed is that there is a new debt that collectors are starting to collect. Those who lose their homes in foreclosures often still owe money based on the difference in their loan and the sales price of the foreclosure. Debt collectors are buying out the deficiencies so they can collect from the homeowner. Many are concerned that this new “job opportunity” for debt collectors will simply result in more abusive and unfair conduct.

Speaking with an Attorney

An experienced bankruptcy attorney can help. Sometimes all it takes is a letter from a law firm to a debt collector to get them to stop employing their unlawful conduct. At other time more aggressive efforts are needed.  In all cases, however, it is important to keep copies of any communications you have with the debt collectors and keep notes of their conduct. Based on the specifics of your particular situation our attorneys will be able to assess your case and determine what steps need to be taken on your behalf.