Do Third Party Debt Collectors Deserve Empathy?
An online article written and published by the debt collection industry’s own Inside ARM(Account Receivables Management) attributes a large percentage of the grief inflicted on consumers by debt collectors to the creditors that hire these third party debt collectors to collect overdue bills on their behalf.
According to the article entitled “Creditors Play an Unrecognized and Powerful Role in the Debt Collection Process”, the smaller third party debt collectors are under tremendous pressure to collect from consumers in order to get their “small cut” or percentage of what is collected. This pressure is in part what causes them to misbehave or harass, call repeatedly, call family and friends and divulge personal information and more.
Since the debt collection industry is extremely lucrative for collection agencies both large and small, the old adage “if you can’t stand the heat, get out of the kitchen” would certainly apply here. The debt collection industry is huge and continues to grow each year as do the complaints from consumers regarding bad collectors.
The Fair Debt Collection Practices Act was enacted to protect consumers from violations by third party debt collectors. Don’t expect a consumer wallowing in debt and on the receiving end of debt collector harassment to feel sorry for the collection agency because they aren’t making enough profit from their creditor due to a mutually agreed upon, low ball contingency agreement or percentage. Debt collectors, both large and small, need to obey these laws and stop complaining about the pressure to be profitable. That issue is certainly not unique to the debt collection industry.
Read Full Post | Make a Comment ( None so far )
