A thought

In my opinion the fdcpa should be updated to include damages for violations of at least $10,000 instead of $1000 per violation. I think that then we'd see a great difference in the collection industry. $1000 is a joke, just a cost of doing business for the majority of CAs.

Majority of the collection agencies do not abide by the laws.They embarrass you by calling at your workplace, contacting your employer, family, friends and neighbors. In most of the cases they literally haunt you to pay a debt that is not rightfully yours. There are thousands and thousands of complaints in FTC. But d saddest part is the long wait that one has to endure. You know FTC takes time to resolve matters. You know it is really a stressful experience to deal with a debt collector.

I think all collection companies that buy charged off debts should be outlawed.

I am with Lawstudent here.The damages need to be increased and it should be assessed per violation instead of per law suit.

I completely agree with everything you all said. $1000 is a joke and a drop in the bucket. If you consider they will collect way more than that from the average debtor. They should raise the fine to $10,000 and have some sort of "three strikes" rule. I never understood how some of the agencies could be sued numerous times and fined and still be allowed to operate. If any other company violated the laws as blatantly as some CAs do, they would have their license revoked. That's another thing. I do not think the licenses are appropriately granted or monitored. But...I know these people are sneaky and can work the system.

I have always believed that the account should always remain with the original company and not charged-off to a debt collection agency. The credit companies take a risk when the extend credit to a customer. They should not be allowed to write it off and sell the account. They should maintain the responsibility to collect on the debt as they have all of the account information right in front of them. Selling it to a CA just makes the ability for consumers to repay the debt harder. The credit company can continue to try and collect, can charge interest and fees legally and, if they feel approrpiate, sue the consumer to repay the debt in full.

They just shouldn't be allowed to pass off their problem to another person. It gets easier and easier for them to loan or extend credit and when they feel like they are losing, they bail out.

I agree. There's virtually no regulation of the debt purchasing industry. That is another problem. To see real change, there should be regulation of debt buying and raising the $1000 to at least $10,000 per violation.

WHY is there no regulation of the debt purchasing industry?? Why has this never been challenged? I agree with so many others that it should be ILLEGAL for an original creditor to sell "paper" to anyone. It is nothing but legal extortion. When an original creditor charges off a debt, the penalty is high enough, to wit, 7 years of bad credit. Might not be a bad idea to write your respective congressmen and women and Senators about the need for REFORM. The current laws, including the new bankruptcy laws (that only apply to individuals, not corporations)foster the idea of financial enslavement. I simply cannot believe that NOBODY has ever challenged the collection industry in a meaningful way.

I agree with Eddie, a charge off is in itself a blemish in the credit report. Under Fair Credit Reporting Act a charge off stays on the credit report for seven years plus 180 days from the date of the first nonpayment. It????????s a big derogatory remark. So, it is not fair on the part of the creditor to collect the debt that has been charged off.

goodnelly, you are so right, it's like you are being punished twice for the SAME debt (or more) depending on how many freakin times they sell the thing. Maybe we should all write our congressmen and senators regarding this issue

Today, the middle way through my vacation, is full of thunderstorms...sooooo, I think this is fate's way of telling me it is a good day to write anyone and everyone in government who will listen about what we discussed. Can't hurt, right?

I will write something up and maybe post it on here later...I mean, it really isn't a bad idea to try. We have all made simple and valid points. It seems our ideas not only help us as debtors, but the credit companies as well. AND...most importantly...it could shut down collection agencies either by the laws themselves or they will just go out of business.

Wishful thinking...but I am going to give it a try.

It can't hurt to do this. It is pure "democracy in action" and your right to attempt to change laws that don't belong in the 21st century. I am writing letters, starting with the State Attorney General's office, then my congressman and Senator. Be very specific in doing so. The issue is not the original creditor, who can actually do whatever they choose about a bad debt. By and large, they CHOOSE to write it off and slap you with a "charge-off" that stays on your credit report for 7 years. Even if it's paid, it will say "Charge Off Paid". THE issue is the current legal right for any third party collector to buy the paper for pennies on the dollar and then have the right to sue you for 2 and 3 times the original debt. It is PURE extortion and should be illegal.