There is a US consumer agency seeking to drastically overhaul the debt collection industry. It is reported that out of all credit cards issued, 35% go into default. That may seem like a lot but in business, 65% of something is better than 100% of nothing.
It’s big business and big money is at stake. The debt collection industry is a 50 billion dollar a year cash cow. Anytime big money is being made, people get curious and want in on the action.
Here is an excerpt of the article …
“According to a summary, the proposal would make sure collectors “substantiate the debt before contacting consumers,” by confirming their identities and the amount owed, as well as checking for any payments made after a default. Consumers frequently file complaints at the agency about receiving calls for debts that do not exist.
In an attempt to “limit excessive contact,” the proposal would cap agencies’ calls to debtors to six attempts each week. It would also create a 30-day waiting period after a person dies for contacting survivors.
Agencies would have to communicate specific information to consumers, such as when outstanding debt is too old for a lawsuit. They would also have to make it easier to both dispute or pay a debt through tear-off coupons on the bottoms of collection notices.”
That sounds really good. It will be interesting to see how long this takes to get into motion or if it even does. This industry like any other large one has plenty of people being paid (lobbyist) to persuade folks in Washington DC (lawmakers) to do what is in the best interest of corporations not the public. Meanwhile, the agency will have plenty of people on payroll collecting pay checks.
Hopefully, the can doesn’t keep getting kicked down the street.