Debt Collection Ethics 101
Almost everyone who has been in debt has received the dreaded phone call from a collections agency. But sometimes one phone call turns into twenty, and even worse, an agent may be aggressive and threatening on the phone.
While it might be true that collections agents are attempting to collect a legitimate debt, more and more negative attention is being focused on unfair and aggressive policies that some companies have been using.
Some of the more aggressive tactics caught the eyes of James Caldwell, Louisiana attorney general and Washington attorney general Ron McKenna who have both pledged to make accounts receivable management firms and their owners clean up after their acts.
In fact, Caldwell has already obtained injunctions on January 8th against two collection agencies that were not complying with the standards that have been set for obtaining debt.
On the same day McKenna said that his office had just come to an understanding with a collection agency that agreed to comply with new restrictions that have been established.
Some of the new boundaries that these collection agencies must comply with include more effective communication. This means that any harassment, intimidation, threats, profanity, or attempts to embarrass the debtor are now out of the question.
With these new settlements, these collection agencies under scrutiny will no longer be able to intimidate debtors through implications such as failing to pay a debt will result in a suspension of the debtor’s driver’s license.
Finally, although these collection companies are lawfully able to report debts to credit reporting agencies, they are no longer allowed to threaten debtors with impairment of their credit rating.
Although collections agencies are justifiably trying to collect a legitimate debt, there are two issues to remember. People who owe money are just that, people, who deserve to be treated with respect and dignity. More importantly, if a debtor is scared of an aggressive collections agent who calls them constantly they very well just stop picking up the calls, leaving themselves in debt, and the collection agencies with nothing.
Mallory Megan works for collections company Rapid Recovery Solution and writes articles on collections and business practices.
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