Credit Basics
Collections Agencies Cashing In
Weak economy could lead to more and more accounts landing in collection
Monday, July 14, 2008
CBS 4 News - South Florida
"Clearly as the economy struggles, and the collections agencies books become more voluminous, they're going to resort to heavier and heavier tactics," said Howard Dvorkin, founder of Consolidated Credit Counseling Services.
But, there is good news for consumers in the form of rules and federal laws designed to protect you from heavy-handed collections agencies.
The Fair Credit Collections Act regulates what time of day collections agencies can call consumers. It limits the number of times the agencies can repeatedly try to contact a customer. Finally, the Act limits a collections agencies ability to reach out to friends, family, and neighbors.
"They're (collection agencies) very creative sometimes, and unfortunately, the consumers who tend not to know their rights under the Fair Credit Collections Act are the victims," Dvorkin said.
So what should you do if you feel like you're being harassed by a collections agency? "Going to a credit counseling agency, a respectable one that's been around for a number of years, is the right thing to do," said Dvorkin.
