Released: October 29, 2009

Calling the debt collectors on abuse

Source: Michelle Singletary, Washington Post (Free Registration)

People dread getting calls from bill collectors. And it’s not always because they can’t pay. It can be a degrading experience, especially with third-party collectors who are overly aggressive, even threatening.

A new report from the Government Accountability Office calls for major reform to the law that governs how companies collect old debt from consumers.

The reform can’t come soon enough. Debt defaults are at the highest level in 18 years. About 6.6 percent of credit card holders were 30 days or more past due in the first quarter of 2009. In 2008, credit issuers had more than $23 billion in unsecured debt that was between 30 and 180 days delinquent.

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