Category: Debt Relief

Debt Collectors Using Aggressive Tactics

Debt collectors using aggressive tactics to pursue payments

Jorgen Wouters

When Betty Perez bought new bedroom furniture for her children earlier this year, she never dreamed that being a few days late on her payments would result in a collection agency barricading her front door and threatening to call the police.

Perez is just one of an untold numbers of consumers, many of them struggling to make ends meet in the midst of the worst economic crisis since the Great Depression, who are facing increasingly aggressive tactics by debt collectors determined to do whatever it takes to make people pay up.

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‘Debt-relief’ companies banned from charging advance fees over the phone

Starting next week, telemarketing companies peddling debt-relief services to consumers will be banned from charging customers advance fees. Any unscrupulous companies that flout the new rules will be caught and punished, the Federal Trade Commission announced.

The modifications to the Telemarketing Sales Rule, first announced last July, represent an effort by the commission to rein in abuses by an industry that’s profited from thousands of financially-distressed Americans during the Great Recession.

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