The consumer Financial Protection Bureau (CFPB) reports, “one-in-four consumers contacted by debt collectors felt threatened” and more than 40 percent of consumers asked debt collectors to stop contacting them.
Debt collection is a common practice. More than 6,000 debt collection firms operate in the United States. When a person defaults on either a bank loan, payday loan, medical bill or other debt, the lender of the debt can sell the debt to a third party. The lender will typically sell the debt for pennies on the dollar to receive some return on the debt.
Debt collectors are required to stop contacting debtors upon proper request. Unfortunately, 75% of consumers continue to be harassed after requesting the debt collector stop contacting them. The CFPB also reported consumers are contacted at hours as late as 9PM and early as 8AM, which is prohibited by the Fair Debt Collection Practices Act.
None of CFPB’s reports is news to Geraci Law. One of the main motivators, for Geraci Law clients, is creditor harassment. Clients report payday loan places threatening them over the phone, calls during work hours, and creditors contacting a client’s supervisor. Why? Because collection agencies have a history of being nasty and not following Fair Debt Collection Practices.
Approximately 15% of individuals, contacted by a debt collection agency, end up being sued. The CFPB reports 75 percent of the sued individuals do not attend court. As a result, the court puts a default judgment against the consumer. The consumer’s wages can be garnished up to an allotted percentage of their income.
Geraci Law knows how to stop creditor harassment and wage garnishments. With more than 40 years of consumer finance experience, Geraci Law L.L.C. has helped over 150,000 people obtain financial freedom.
The CFPB’s report is available on their site at: http://files.consumerfinance.gov/f/documents/201701_cfpb_Debt-Collection-Survey-Report.pdf