The Nasty Debt Collector

A recent CNN article notes that debt collectors have gone even further in the gutter than they already were with respect to trying to collect bad and written off debt. The sad thing is, more often than not, debt collectors are the scum of the earth and always have been. The recent spike in illegal collection activities just drives the point home. Debt collectors are like street thugs trying to squeeze a penny out of the penniless. 

The irony is, if anyone knows about bad debt, they will also know that much of bad debt these collectors are after --is also bogus debt --debt that has been inflated with bogus fees and interest and bogus bank activities meant to drive up the dollar amount of bad debt unfairly. On top of that --bad debts are usually sold for pennies on the dollar to hucksters trying to make a buck off those who cannot afford it and should not have to pay so much since most of it is bogus.

Debt collectors ought to be required to be licensed by the state, finger printed and regularly monitored by an independent agency so they can be held accountable for the often dirty antics they try to pull off. Furthermore, when debt collectors resort to the nasty --they ought to go to jail. Maybe going to jail would send these screw loose folks a message.

One example of such antics speaks for it all. A person got a credit card with a total limit of $300 dollars. Because of personal circumstances and the economic meltdown, this person was unable to pay off the debt. The credit card account was left open for many months despite the debtor's default and the credit card company ran the debt up to $1200 dollars in a matter of six to eight months with over limit fees and late fees being the majority of the debt, not interest. Creditors ought to be required to close an account immediately upon default and stop assessing these fees -that is only fair. 

The credit card company in question here, (Capital One) called 5-8 times a day daily. It then filed papers to get a judgment on this bogus debt. After the judgment the company tried to garnishee Social Security Disability in the debtor's bank account. The debtor finally got back his disability but lost $50 dollars in garnisheement fees. 

Finally as a last resort --the Capital One sent a settlement offer for $350 dollars which the creditor still could not pay but would have been more willing to try to pay to begin with had they offered it. Who knows how much legal fees were wasted in this transaction but it's almost certain it was more than what the original debt was or even the settlement offer. It makes you wonder why these banking folks cannot add up math and realize these collection activities cost more money than their worth and that you cannot get blood out of a turnip and also you cannot expect any reasonably intelligent debtor to pay any attention these antics. 

There needs to be a major crack down on credit card companies and banks who engage in this kind of highway robbery everyday. These folks make it impossible to pay even if you were willing to work out a plan. These folks try to enhance their bottom line at any expense unfairly. It is no wonder the big banking lobby and credit card companies pushed through the ill conceived bankruptcy reform some years ago. That bill should have included safe guards for consumers and regulation to give consumers a level and equal playing field. Sadly to say both Democrats and the GOP allowed this sham to become law. 

Ted M.