Worried about Bill Collectors? They Are Getting More Aggressive

As the recession hit many Americans hard, one of the industries that began to boom was the debt collection industry. There were more debts to collect, as consumers fell behind on mortgages, credit card payments, etc. The downside is that as the economy struggles, the ability of the consumer to pay bad debts starts to decline. This has caused the industry to become more aggressive.

"The American consumer is really hurting and collectors are having to fight harder to get money," said Robert Andrews, a senior analyst specializing in the debt industry.

There has been a 50 percent increase in the number of harassment complaints since 2009, according to the Federal Trade Commission. They expect that the number is going to jump another 13 percent this year. The top complaint is that of bill collectors who call over and over again, every single day, for weeks.

In addition to calling consumers more often, bill collectors are using stronger, more abusive language. The number of abusive language complaints by consumers went up by 35 percent last year. A 55-year old woman in New York said that a collection agent called her repeatedly, and personally attacked both her and her husband. He then called her sister, ex-boyfriend and her husband's ex-wife's mother:

"This guy was out of his mind and he kept calling and calling, telling me 'you better talk to me, you deadbeat,'" she said. "He was very threatening and the whole thing was just really unsettling -- it made you wonder who was going to show up at your door." (Source)

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Debt Collection Horror Stories

Spiral Effect
AOL User RBettes941 Says:
"Do the credit companies and retailers realize they have created a spiraling effect on peoples credit? I have always had a score in excess of 750, and always paid my bills on time. Recently, due to my wife working on graduate school ... our debt to credit lines increased. We were at about 45% after (her) completion of school, then American Express dissolved our $25,000 credit line, which we owed nothing on. This moved our percentage of credit to debt to about 60%, and lowered our scores to less than 700. This caused other creditors to follow suit by lowering our credit lines, which then lowered our score again."

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Debt Collection Horror Stories

Calling a Seven-Year-Old
AOL User SOCCERUTD Says:
"We had an unpaid bill because of a dispute in our retail business. Our sales rep doubled our order and then went on maternity leave, and [the company] said the only person who could fix it was her! A bill collector from Texas called over and over and I attempted to explain (the situation) to him ... The day before Thanksgiving he called and my daughter answered the phone -- she was 7 years old at the time. He said to her, 'Because of your daddy you are not going to be able to live in your house anymore and won't be able to have Thanksgiving there with your family, it is your Daddy's fault!'"

Debt Collection Horror Stories

Calling the In-Laws
AOL User Poolchick7 Says:
"These people are the worst. When they couldn't reach us about a car payment that was 10 days past due, they called our daughter's in-laws and left a message with them to have us call them back about a personal matter. We are talking about calling people whom I only see twice a year, and they somehow made a connection between my daughter, her in-laws and us. I can't think this is even legal!"

Debt Collection Horror Stories

Two Calls a Day
AOL User SBPFORD Says:
"I have been receiving calls twice a day from a collection agency. I ask them to send me a statement or something to file on insurance (medical claim), (and) they refuse. This bill is three years old and, they said, never filed on insurance. They call every morning around 9:30 and every evening about 8:30, seven days a week."

Debt Collection Horror Stories

Fake Debt Collectors
AOL User A114Sieb011 Says:
"I make six figures a year, my wife makes six figures a year, we owe no one a penny, yet I get daily calls from Palisades Collection saying to call them on a bad debt. I had, and the first thing on the recording is, 'Enter your social security number.' Yeah, right. I checked my credit report and there is no unusual activity. Palisades, quit calling you stalker."

Debt Collection Horror Stories

No Way to Stop Them
AOL User ICANGELS Says:
"This company still calls my husband's work after receiving three written notices not to. Their representative also called our neighbors in her goal to embarrass us! They were calling my home up to eight times a day and hanging up on me, after I told them my husband wouldn't be home before 6:00 p.m. The problem? There's no way to stop them. They feel they are above the law and know there aren't any attorneys who will waste their time suing them."

Debt Collection Horror Stories

Forgetting Their Promise
AOL User Gloqui5 Says:
"I got a phone call today from a credit card I couldn't pay 15 year ago. Back then I let them know that I just could not pay my balance of $300. They informed me that they would have to do a charge off, and it would show on my credit. They did, and it showed for seven years. Now 15 years later, they start calling and they want $600 or it will back on my credit. Can they do that?"

Debt Collection Horror Stories

Fake Lawsuit
AOL User Mnmkid221 Says:
"A collection company used city official names and paperwork to look as if I was being taken to court. However, when I called, the court knew nothing of the paperwork or of any lawsuit against me. It seems that the collection agency wanted me to panic at the sight of the papers and call the phone number provided on the 'official-looking papers.' Then they could terrify me and demand payment."

Debt Collection Horror Stories

Police Assistance
AOL User Deeannafrancis Says:
"I get a call that I am 49 days late with my payment, and it is now in collections. I told her I overlooked the December 15th bill, but I will pay it online right now. She loses it with me and screams at me that I can only pay her. I hang up, go online and make the $35.00 pmt. My phone rings again, I explain that I paid it online. After that, they put me on auto call for every 15 minutes for two days! The last phone call I got from them, I nicely asked her to hold, and I called the local police station. When I got back on the line with them, (I asked for) her name so that I could file a harrassment charge. She hung up and no one else called me."

Debt Collection Horror Stories

Hospital Scam
AOL User KMKiaski Says:
"Even though I had insurance, and it paid between $8,000 and $9,000 for a one night stay, I got bills for an additional $2,700 from the hospital much later. They said if I didn't pay it they would send it to collection, so I did. I later found out they regularly did this, charging more than the charge accepted by insurance and then frightening patients into paying that extra charge -- hey free money for them! A person I work with said the same hospital came up with several old charges years later."

Debt Collection Horror Stories

Surprisingly, there were even cases of debt collectors threatening physical violence against consumers. There were 2,517 such complaints, double the number from the previous year. Collectors are also being aggressive about the time at which they call, with many of them calling before 8 a.m. or after 9 p.m., demanding more than they are actually owed, or revealing the debt to a third party. They sometimes even threaten jail time against those who owe money to a creditor.

If you find yourself victimized by overly aggressive bill collectors, the law has guidelines that can protect you. The Fair Debt Collection Practices Act, established in 1977, protects consumers from bill collector harassment. It sets limits on when they can call you, what information they can share with others, and what they are legally allowed to say to you in order to collect the debt.

Being in debt is nothing to be ashamed of, and there is nothing embarrassing about being behind the bills. What is important, however, is that you learn your rights to make sure that you are not taken advantage of. Times are getting tough for everyone, That does not mean you need to be a victim of someone paying their bills by collecting on them.

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, "Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.". To have Dr. Boyce Financial advice delivered to your email, please visit Dr.BoyceMoney.com. To have Dr. Boyce commentary delivered right to your email, please click here.