Millions of American’s have some sort of debt. In fact, the average amount of credit card debt per household in the U.S. is estimated at 16,000 dollars. Debt can accumulate easily, and making payments on massive amount of debts owed can be troublesome and prove difficult to many. Sometimes consumers cannot afford the payments and stop in order to pay their mortgage, purchase food, or pay for utilities instead of paying down their debts. So what happens if consumers cannot pay their debt and are being harassed? They may need to file a debt collector phone harassment lawsuit to make it all stop.
Debt collection agencies are often third-party companies that are hired to contact the consumer and try to get payment from them. Many debt collection agencies have a negative rapport due to the constant calling and repeated efforts at contacting the consumer. The Fair Debt Collection Practices Act (FDCPA) was created to help stop abusive behavior and protect the consumer’s rights and to prevent ill behavior on the part of the collection agencies.
Why would collection agencies want to deal or buy bad debt? First, most agencies receive a percentage or specific amount of the total owed if they can get the consumer to pay. Second, large lenders are required by law to inform in writing any non-performing debts they are dealing with so it won’t appear as if they are trying to hide any losses. If debts are written off, there are tax deductions that go along with these actions which also benefit lenders and debt collection agencies. There is money to be made by acquiring “bad” debts and that is why many debt collection agencies are known for their repeated contact attempts and constant effort to contact the consumer and collect these monies.
The U.S. has trillions of dollars of “bad” debt available for purchase to collection agencies. There is no limit to how many debt they can buy and realistically, debt collection agencies can make good money by getting consumers to pay what they owe. Although the FDCPA set strict guidelines for debt collection agency behaviors and business procedures, there are some that still use language that alarms consumers or being pushy and constantly calling or and texting to get the consumer to pay. These types of behaviors are harassing to the consumer and they can file complaints in accordance with the regulations set by the FDCPA if they feel any of these collection agencies has violated the act’s rules.
Debt collectors purchase bad debts because they can make a profit off of them by getting the consumer to pay. The amount of debt in the U.S. alone is plentiful, and there are thousands of agencies available to buy “bad” debt.