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Rogue debt collectors — how to fight them March 2, 2008

Posted by curmudgeonblog in Uncategorized.
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(CNN) – If you’ve faced a financial catastrophe — an illness or job layoff — and you’ve fallen behind on some bills, you’re well aware that debt collectors are eager to collect those payments.

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Some debt collectors are crossing the line into illegality according to some consumer groups.

But some collectors go over the line, threatening to have the person arrested, making improper bank withdrawals, intimidating people and making harassing phone calls.

In one case a collector threatened to call a woman’s place of work “until she lost her job,” according to the National Consumer Law Center.

In another case, a collector threatened to send the police to the person’s workplace to arrest them, said Joe Ridout of Consumer Action.

The Better Business Bureau received a complaint about a debt collector contacting someone’s grandmother four-to-five times a day, using threats like, “if she dies, then her life insurance can pay this debt off.”

John Fugate, a Texas consumer attorney relates a story about a rogue debt collector. The debt collector told the “9-year-old child of my college friend, who is the victim of identity theft, that they were going to take her mommy away forever.”

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