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Debt collection

AMERICAN DEBT COLLECTION SPIRALING OUT OF CONTROL HOW CHASE BANK MADE S1.9 BILLION ON OUR CREDIT CARD DEBT IN 2009 The U.S. industry for private debt collection is on the rise. Major banks and even the government have begun to contract debt collection to companies whose employees work largely on commission of payments recovered. AND COLLECTORS ARE GETTING AGGRESSIVE: COMPLAINTS OF COLLECTORS LYING, STALKING AND THREATENING BORROWERS HAVE RISEN 66% IN JUST 3 YEARS. Educate yourself on what's legal, what's not, and what you can do to protect yourself: THE FEDERAL TRADE COMMISSION VERSUS PRIVATE DEBT COLLECTORS In the past 3 years, the number of official complaints against debt collectors has risen by 66%, which is more than any other industry governed by the FTC. 180,000 140,036 120,000 2009 2010 2011 Last month, the FTC charged 2 debt collectors of violating the Fair Debt Collection Practices Act. ILLEGAL METHODS TO GAIN PAYMENTS Making death threats Threatening imprisonment Claiming debtors would have to pay Threatening to kill the family dog legal charges JUDGES BANNED THE TWO COLLECTORS FROM THE INDUSTRY AND FINED THEM $1,063,000 IN REPARATION- THEIR WAGES SINCE BEGINNING WORK IN 2005. LEGAL MEASURES OF US DEBT COLLECTION CONTACT PEOPLE YOU KN OW TO FIND OUT WHERE YOU LIVE AND WORK: Call or visit you any time between 8AM and 9PM FILE COURT ORDERS AGAINST YOU TO EXPAND THEIR RIGHTS TO: $ Garnish your wages Take money directly out of your bank account HARASS YOUR FAMILY TO PAY YOUR DEBTS AFTER YOU'VE DIED: DCM, a collection agency in Minneapolis, collects over $1 billion/yr in deceased accounts from spouses and children not legally required to pay. JP MORGAN CHASE AND PRIVATE DEBT COLLECTORS OUTSOURCING DEBT COLLECTION IS GOOD FOR BANKS: Between 2009-2011, Chase sold more than $20 billion in credit card accounts to aggressive debt collection companies and began suing tens of thousands of borrowers. $20 BILLION PAYMENT PRIVATE SOLD $20 BILLION IN CREDIT ACCOUNTS DEBT JP MORGAN COLLECTORS CHASE SUED 10,000 + BORROWERS Between 2009 to 2011, Chase multiplied their collections. STUDENT LOANS MORTGAGE CREDIT CARD DEBT CREDIT CARD DEBT CAR LOAN CHILD SUPPORT 2000: $130 MILLION 2009: $1.2 BILLION OUTSOURCING DEBT COLLECTION IS BAD FOR CONS UMERS: October 2009 Chase employee Linda Almonte audited accounts sold to debt collection agencies and found faulty records: 50% OF SAMPLED FILES WERE MISSING ESSENTIAL INFORMATION AND ALMOST 25% OF THE FILES OVERREPRESENTED HOW MUCH DEBT WAS OWED. November 2009 Almonte reported her findings and was fired. Employees were told never to have communication with her again. CHASE'S COLLECTION'S CONSEQUENCES: 2010 2011 JP Morgan Chase was In April, the Office of the accused of: Comptroller and Currency forced Chase to halt 1. Pressuring collectors to collect on accounts hundreds of thousands missing info. lawsuits against 2. Robo-signing affidavits against borrowers. US GOVERNMENT AND PRIVATE DEBT COLLECTORS Currently, $67 billion in federal student loans are in default and the Department of Education now contracts with aggressive collection agencies. "STUDENT-LOAN DEBT COLLECTORS HAVE POWER THAT WOULD MAKE A MOBSTER ENVIOUS." - ELIZABETH WARREN, HARVARD LAW PROFESSOR STUDENT LOAN DCOLLECTORS HAVE THE ABILITY TO GARNISH FEDERAL BENEFITS LIKE: Security Benefits Veterans' Benefits Foreign Service Retirement Disability Benefits Supplemental Security Income STUDENT LOAN COLLECTORS ARE AGGRESSIVE: They work for minimum wage and rely on commissions from the payments they recover. IN 2011, THESE PRIVATE COMPANIES MADE $1 BILLION IN COMMISSION AND ALSO COMPLAINTS AGAINST THESE COMPANIES JUMPED 41%. HOW TO PROTECT YOURSELF FROM AGGRESSIVE DEBT COLLECTORS IF A DEBT COLLECTION AGENCY: CALLS YOU PERSISTENTLY AT YOUR JOB Inform them you cannot receive personal calls at work and send them a written request to stop, with receipt, to document the request. THREATENS YOU FOR PAYMENT OR FACE A LAWSUIT Do not make the payment until you check on the statute of limitations for the debt. You cannot legally be sued if the statute of limitations has passed, but making a partial payment can re-open the statute and you can be sued. SUES YOU FOR DELINQUENCY Go to court and ask for documentation, it's usually not provided, or not worth it for debt collectors to find it. HARASSES YOU FOR A DEBT YOU HAVE ALREADY PAID Ask for documentation of the debt-It likely won't exist. Also check your state's statute of limitations (range 2-15 yrs) on debt collection suits; it may be past the limitation, and thus unable to be taken to court. In the last week of March of this year, student debt rose above credit card debt for the first time in history. Despite this shift, the two most frequent kinds of debt have one significant thing in common: being sold to second-party debt collection agencies, which are now acting more aggressive than ever. Brought to you by FRUGAL DAD SOURCES: http://www.bloomberg.com/news/2012-03-26/obama-relies-on-debt-collectors-profiting-from-student-Loan-woe.html http://www.jdsupra.com/post/documentViewer.aspx?fid-0624b03c-ded5-42e3-8be3-7e7f4cf5d4ea http://www.ftc.gov/os/caselist/1123035/110930rumsoncmpt.pdf http://www.ftc.gov/opa/2012/03/rumson.shtm http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18. shtm http://online.wsj.com/article/SB10001424052970204224604577030043890121710.html http://www.americanbanker.com/issues/177_49/chase-credit-cards-collections-occ-probe-linda-almonte-1047437-1.html?zkPrintable-1& nopagination-1 http://www.americanbanker.com/issues/177_52/jpmorgan-chase-credit-card-collections-1047573-1.html?zkPrintable-1&nopagination-1 http://www.americanbanker.com/issues/177_52/jpmorgan-chase-credit-card-collections-1047573-1.html http://www.americanbanker.com/issues/177_7/jpmorgan-chase-consumer-debt-collection-1045606-1.html?pg-2 http://www.bloomberg.com/news/2012-03-26/obama-relies-on-debt-collectors-profiting-from-student-loan-woe.html http://www.ktrv.com/news/local/144464965. html http://www.nytimes.com/2012/04/03/opinion/nocera-why-people-hate-the-banks.html http://www.therepublic.com/view/story/debt-agency040212/debt-agency040212/ http://www.deseretnews.com/article/865552433/Aggressive-debt-collection-is-up-What-you-need-to-know-to-fight-it. html http://www.africanbusinessreview.co.za/press_releases/crown-warns-of-next-economic-bubble-student-loans

Debt collection

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Frugal Dad

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debt

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Economy
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