Debt Collectors Adopt New Tactics

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by: stickystebee
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Word Count: 363
Date: Sun, 24 May 2009 Time: 7:42 PM
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One of the most distressing aspects about being in debt is to have to deal with debt collectors. Sometimes debt collectors are employed by lending companies to chase up debtors, and sometimes debt collecting companies will purchase the debt from lending companies for a sum of money that is much less than the outstanding principal. Either way, debt collectors will often stoop to unethical and intimidating measures in order to extract payment.

Typical of their actions is to continually make phone calls to harass debtors into agreeing to make payments they cannot afford. Debtors have reported that these phone calls may be repeated every hour or so, and in addition to phoning their victims at home, the collectors will attempt to discover work telephone numbers so that they can contact their targets at work also. Such pressures can cause severe distress and embarrassment to those who must endure them and this can often result in severe depression which can have serious consequences.

Debt collectors have now adopted a new tactic. They have been contacting the neighbours of people with debt problems and leaving messages with them. This has allegedly been done simply to increase embarrassment and intimidation, although the companies concerned have claimed that it was done accidentally.

At least the Office of Fair Trading (OFT) has stepped in and it is attempting to stop this activity, which it considers to be unacceptable. The OFT has already prohibited one such company from this practice and has announced that it intends to monitor other companies suspected of using it.

It is interesting to note that the OFT has stated that people with financial difficulties will soon have to be treated fairly, which is a clear indication that they consider that currently such people are treated unfairly. Recently a new rule has been introduced that anyone who has sought help with their debt, for instance by contacting a debt management organisation, will be given a breathing space in order to sort out their problems. This new rule will be enforced by the Credit Services Association (CSA).

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It is interesting to note that the OFT has stated that people with financial difficulties will soon have to be treated fairly, which is a clear indication that they consider that currently such people are treated unfairly. Recently a new rule has been introduced that anyone who has sought help with their debt, for instance by contacting a debt management organisation, will be given a breathing space in order to sort out their problems. This new rule will be enforced by the Credit Services Association (CSA).