Monday, November 1, 2010

Debt Collector Harassment Report on Today Show

Lisa Myers reported on debt collector harassment.  Debt collectors were harassing the Whitlocks for a $15,000 debt stemming from landscaping work.  The Whitlocks were not satisfied with the work that was done.  The contractor would not come back to fix it.  Debt collectors began harassing them for $15,000 which was far more than the debt they owed.  The debt collectors threatened the Whitlocks with sending information to the IRS, stating the client was proceeding with a lawsuit that would damage their credit report, and even threatened to have the Whitlocks followed.  The Whitlocks have filed a countersuit and the matter is pending.

Unpaid debt is being sold to debt buyers for pennies on the dollar.  Debt buyers will then sue the consumer.  Debt buyers may not even care if the consumer actually owes the money.  They hope to intimidate a consumer enough so that they will pay, regardless if they owe the debt or not.

The Federal Trade Commission has seen the number of complaints increase from 91,000 in 2007 to over 120,000 in 2009.

To see the full report, go to http://today.msnbc.msn.com/id/3041440/vp/39737563/