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Relief from Aggressive Collection Tactics

Coping with the stress of overwhelming debt is a difficult task. That task is often made worse by the aggressive tactics of collection agencies. Just as bankruptcy provides relief from debt, new regulation taking effect in January 2013 aims to provide relief from aggressive or illegal collection efforts that accompany unmanageable debt.

In October of this year, Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB), addressed difficult economic circumstances faced by struggling individuals and families. Mr. Cordray also remarked on conditions faced by debt-ridden consumers in the current economy, including the following points:

  • Foreclosures are still having a lingering impact
  • Approximately one in ten people in the United States are subject to debt collection, for amounts averaging $1,500
  • Acting on inaccurate information, debt collection agencies sometimes pursue debt a consumer does not owe
  • Lacking appropriate information, consumers may not understand their right to dispute a debt claim
  • Consumers subject to a default judgment may not have received accurate notice
  • Individuals swamped by debt are harmed through emotionally abusive collection efforts, including disparagement, humiliation, repetitive or abusive contact and threats of arrest
  • Individuals identified as financially vulnerable are sometimes targets of collection fraud

Indebted consumers deserve respect and accurate financial information. In January, the CFPB begins regulation of agencies with more than $10 million annual receipts from debt-collection actions.

If you are dealing with too much debt or questionable collection tactics, speak with an experienced bankruptcy attorney to gain relief from debt ¾ and from aggressive collection tactics.

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