What would it feel like to have your wages garnished for a debt that you didn’t even owe? This unfortunate scenario happened two times to a New Mexico woman who had no connection to the Target Bank account or to the collectors employed by Target. With an explosion of growth in the debt buying industry since the 1980’s, cases like these are becoming increasingly prevalent. Now the combination of technology and large debt buyer firms has created a profitable industry that also holds the record for highest industry complaints logged with the Federal Trade Commission. Consumers have very real options when faced with unscrupulous debt collectors, they can fight back by taking advantage of the statutes enacted in the Fair Debt Collection Practices Act.

Some debt collectors phoned Lucinda Yazzie, subjecting her to the unpleasant experience of hearing them claim that her Target card was carrying a late balance. She informed the collectors that she did not owe the debt and that there was another person in the area with the same name as her. Collectors received a garnishment order regardless of her efforts to inform the debt collection agency multiple times. Her employer insisted this was not the same employee and the garnishment was dropped. Yazzie was faced with further legal action by the same debt collector only two years later and her wages were garnished again. Until filing a lawsuit of her own for FDCPA violations, the former standing order was still considered in affect.

She received a settlement from a lawsuit in the amount of $1,260,000. In this particular instance the compensation is definitely worth considering. Lucina Yazzie took action to hold collectors accountable; but most Americans won’t defend themselves against an industry that’s very well funded and composed of very motivated agents who are always being pushed to the maximum on very noisy boiler room floors.

Owing its’ origins to the Savings and Loan Crisis of the 1980’s, the debt buying industry and third party debt collection has come a long way. After dealing with Savings and Loan assets the debt buying and collection industry known by insiders as the “Adjustable Receivables Management” industry, branched out into credit card and other consumer debts.

Until the recession in 2008 debt buyers and collectors grew slowly but steadily, and then analysts predicted an increase in the business. These estimations end up being true because in 2007 there were approximately 100,000 complaints. That figure jumped to 130,000 in 2009. Several factors influencing the rise in complaints include aggressive tactics that ignore legal boundaries, technology to increase calls to consumers and the increasing use of local courts to sue for delinquent credit card debts.

Creditors are required to hire collection agencies with a qualified attorney in the same state as the one who owes the debt, however the empty threat of “legal action” is a favorite among bill collectors. This is often an FDCPA violation if the collector does not have the immediate capability and intention to sue on the debt.

Research has shown that respondents who appear before the court for their creditor lawsuits are much more likely to have their cases dropped than those who did not. The study also states that the most important thing a consumer can do if sued by a creditor is to respond through the court system within the time allowed even if the debt is not theirs.

The courts are rejecting the legal actions of a lot of creditors, which shows that they are often unable to follow through with their threats. But this is a business that has a 58% increase of profits in the year 2010. Sometimes it helps to not follow all the laws and be aggressive.

Because of the high volume of complaints the Federal Trade Commission urges consumers to use the protection provisions in the Fair Debt Collection Practices Act to defend themselves against non-compliant debt collectors. In much a similar scenario to the intensely partisan legislative scene that exists today, the FDCPA barely passed after a tenuous debate, and was enacted in 1977. However Congress ultimately realized that there was a need to protect people from all parts of society against abusive debt collection practices that were also rampant in the Seventies. The need still exists today.

In an Article on money by CNN the proprietor of a debt collection agency notes that “Debt doesn’t go away as fast as it used to”. Debt is now a fact of life and a burden to manage for many Americans. Fortunately there are Certified Debt Specialists who have experience talking to hundreds of bill collectors. These people are professionals and are aware of the ins and outs of the system. More and more consumers are realizing the need for a specialist with technology that is certified to help negotiate with big debt collection companies that are continually growing.

Debt Settlement

Debt Settlement / Web Development Orlando

Loaning money is an amazingly useful business strategy. It is probably the least risky investment you can make – rather than investing in a stock or a share which can go up or down, or even a property that is somewhat subject to fluctuations and sudden events, you invest in a person or a group of people who are legally obligated to pay back the loan. This is then pretty much a guaranteed return on your investment and because you will organize the terms of your loan it means that you also get to choose how much interest you make on it and exactly how much you’re willing to put in.

It isn’t surprising then that numerous companies invest in loans and offer mortgages, car financing, business start-up loans and more. With all of the pros of this tactic, there is one downside to lending as a business strategy – collecting bad debt. No one ever enjoys asking for money and that of course can create an weird and embarrassing feel.

Instantly you become the ‘bad guy’ and the connections this casts on your business are not always the positive ones that you would select. Also, this can sometimes hastily wind up in a conflict. This is when the borrower attempts to avoid their responsibilities, delay paying or paying under the agreed amount.

Of course this then puts you as the lender in a difficult situation as you need to push them to get back your investment, but without causing any problems that could otherwise hurt your company. That’s where debt collection agencies come in and how they can assist you in getting your money back as fast and safely as possible.

A collection agency will help before they do anything by deflecting the attention away from your business. If you receive a letter in the main telling you that you owe a certain amount of money and need to pay it within a certain amount of time it’s not going to make you happy. You don’t want to turn people against your company, so to have someone else handle this aspect for you is a great way to protect your image.

Looking for a collection agency? Rapid Recovery Solution is an attorney based commercial collection agency that works round the clock to collect your money! Contact them today for your FREE quote and to find out more information!. Also published at Purpose Of A Debt Collection Agency.

A collection agency is there to solve a specific problem: to collect bad debt. As bad as it is to owe money, it can also be pretty bad to have somebody owe money to you. As you know, your business needs a steady stream of income in order to make sure that you can keep your doors open. But clients often don’t pay the money that they owe, so that’s where a collection agency comes in.

You should think about hiring a collection agency if you are having difficulty either in reaching a debtor or getting a debtor to agree to give you the money that he or she owes. Debt collection is a difficult prospect, so it is best to go with a professional. If you are still not sure, ask yourself the following four questions:

1) Do I have the time? You signed up to do whatever it is that makes your business successful, not spend all day on your phone trying to get somebody to send you a check.

2) Do I have the resources? Debt collection agencies have the latest technology and large staffs dedicated to making sure that you get the money that you are owed. Short of spending a lot more money, you’re not going to be able to do the things that they’re able to do.

3) Do I know all the rules? Debt collection is a heavily regulated activity with both federal and state laws governing what can and cannot be done. Do you know when you’re legally allowed to call? What do you do if your debtor hires a lawyer? What questions are you allowed to ask the friends and family of the debtor? Each of these have specific answers which, if you mess up on, you could be facing a costly fine.

4) Do I want to? Calling people up and trying to get them go give you money is not exactly fun. Debt collection can be incredibly frustrating and draining. I’m sure it’s the last thing that you would want to in your spare time.

If you have answered “yes” to any of these four questions (and you probably answered “yes” to all four), they it’s time to hire a collection agency and help turn that bad debt into good profit.

Rapid Recovery Solution is an attorney based collection agency. For more information on commercial debt collection contact them today!. Check here for free reprint license: When Should I Hire A Collection Agency?.