Obama Backing Cell Phone Calls From Debt Collectors
In an effort to collect a greater percentage of past due moneys owed for federally backed student and other loans, President Obama is lending his support to debt collection calls to debtors via cell phone. Allegedly disappointing both consumer groups and Democrats alike, the President claims this move will help debt collectors reach consumers at a time when the majority of students and adults no longer have a land line and have become more difficult to reach and thus, collect from.
The Telephone Consumer Protection Act has regulated cell phone calls from auto dialers and robo calls from debt collectors, but if the President has his way, debt collectors collecting federal debts from consumers would be allowed to call a cell phone even in those instances.
National consumer groups are critical of this move and claim it is counter productive to fair debt collection and will not result in a windfall of greater collections. It may serve to provide an even greater channel for debt collector harassment and annoying practices, already the number one complaint received by the FTC and if approved, that number could grow exponentially.
The debt collection industry has been pushing for legislation to allow cell phone robo call contact for all debt, whether its federal or non federal. That has been on the debt collection industries wish list now for a few years. The President’s plan is just one piece of into the huge $3 trillion deficit-reduction plan the president submitted to Congress.
The jury is still out as to how much potential revenue federal debt collectors could bring in if cell phone calls become a reality as in a cash strapped economy squeezing “blood from a stone” may be more difficult than anticipated.
