What would it feel like to have your wages garnished for a debt that you didn’t even owe? This unfortunate scenario happened two times to a New Mexico woman who had no connection to the Target Bank account or to the collectors employed by Target. This happens more frequently as the marketing and purchase of debt has increased substantially in the last few decades. Although technological advances and an increase in the size of debt buyer firms have created a more profitable industry, the industry also holds the record for having the highest number of complaints filed against them with the Federal Trade Commission. Regulators are not able to deal with every case, but the Fair Debt Collection Practices Act grants citizens important rights in debt disputes.

Lucinda Yazzie was very dismayed to receive calls from bill collectors accusing her of being late on paying her Target card bill. She informed the collectors that she did not owe the debt and that there was another person in the area with the same name as her. Collectors received a garnishment order regardless of her efforts to inform the debt collection agency multiple times. Her employer claim that this was a different employee and stopped the garnishment. Two years later however the same debt collection firm filed suit again and got another garnishment order against Yazzie. The order was not lifted until the point in time when she filed a lawsuit of her own for violations against the FDCPA rules and guidelines.

In the end, she received a $1,260,000 settlement in the lawsuit. An extremely big award for a case like this. Lucina Yazzie took action and held the collectors accountable; however many Americans will not defend themselves against an industry with plenty of money and composed of motivated employees that are always being pushed to the maximum on very noisy collection floors.

The Savings and Loan crisis of the 80’s gave rise to the 3rd party collection and debt buying industry. After dealing with Savings and Loan assets the debt buying and collection industry known by insiders as the „Adjustable Receivables Management“ industry, branched out into credit card and other consumer debts.

Debt buyers and collectors grew at a slow but steady pace until the Recession hit strongly in 2008 at which time analysts predicted an increase in business as well as complaints for the debt collection industry. These estimations end up being true because in 2007 there were approximately 100,000 complaints. By 2009 the number had increased to 130,000 per year. Several factors influencing the rise in complaints include aggressive tactics that ignore legal boundaries, technology to increase calls to consumers and the increasing use of local courts to sue for delinquent credit card debts.

Creditors are required to hire collection agencies with a qualified attorney in the same state as the one who owes the debt, however the empty threat of „legal action“ is a favorite among bill collectors. If the collector doesn’t have the immediate means and intentions to take legal action on a debt, this could be a violation of the Fair Debt Collection Practices Act.

Research has shown that respondents who appear before the court for their creditor lawsuits are much more likely to have their cases dropped than those who did not. The study also states that the most important thing a consumer can do if sued by a creditor is to respond through the court system within the time allowed even if the debt is not theirs.

The fact that many creditor suits are thrown out illustrates that the heavy handed tactics the collectors take can often be a bluff as are many of their threats. However in an industry that has seen an increase in yearly profits of 58% in 2010. Being aggressive can pay off even if the laws aren’t always followed.

To defend themselves against non compliant debt collectors, the Federal trade commission urges consumers to use the provisions under the Fair debt collections practices act Similar to today’s partisan legislative environment, the FDCPA faced a heated debate in Congress in 1977 and barely passed the vote. However Congress ultimately realized that there was a need to protect people from all parts of society against abusive debt collection practices that were also rampant in the Seventies. Today the nee still exists.

In an Article on money by CNN the proprietor of a debt collection agency notes that „Debt doesn’t go away as fast as it used to“. For a large number of U.S. citizens, long-term indebtedness is unavoidable. Certified debt specialists are people who, fortunately, have vast experience dealing with bill collectors. They have all gone through extensive training in order to familiarize themselves with every possible situation. Now more than ever creditors are realizing the necessity for certified specialists with advanced technology to help negotiate with large debt collection operations that are continually growing.

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