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Attorney Generals Say To Collection Agencies Enough is Enough!

Attorney Generals Say To Collection Agencies Enough is
Enough!

By Mallory McGuinness-Hickey

Almost everyone who has been in debt has received the dreaded phone call from a collections agency. But sometimes one phone call turns into twenty, and even worse, an agent may be aggressive and threatening on the phone.

While it may be true that collections agents are trying to collect a legitimate debt, more and more negative attention is being focused on unfair and aggressive policies that some companies have been using.

Some of the more threatening policies caught the eyes of James Caldwell, Louisiana attorney general and Washington attorney general Ron McKenna who have both pledged to make accounts receivable management firms and their owners take more accountability for their behavior.

In fact, Caldwell has already obtained injunctions on January 8th against two collection agencies that were not complying with the standards that have been set for obtaining debt.

On that very day McKenna also stated that his office had just come to an agreement with a collection agency that agreed to follow the new restrictions that have been established.

Some of the new rules that these collection agencies must follow include more effective communication, which means that any harassment, , threats, profanity, or intimidation attempts to embarrass the debtor are now out of the question.

With these new settlements, these collection agencies under scrutiny will no longer be able to intimidate debtors through implications such as failing to pay a debt will result in a suspension of the debtor's driver's license.

Finally, although these collection companies are able to lawfully report debts to credit reporting agencies, they are no longer allowed to threaten debtors with impairment of their credit rating.

Even though collections agencies are just trying to collect a legitimate debt, there are two issues to consider. Men and women who owe money are just thatmen and women, who deserve to be treated with respect and dignity. More importantly, if a debtor is too frightened of an aggressive collections agent who calls them constantly they very well just stop picking up the calls, leaving themselves in debt, and the collection agencies with nothing.