My Highest-Earning NewsBreak Story in January was About Illegal Debt Collection

Yes, even if you owe the debt, you have rights

Photo by Tim Gouw on Unsplash

Debt collectors suck.

They tend to employ a range of tactics ranging from guilt to intimidation.

They are often attempting to squeeze blood from a turnip.

In many cases of financial delinquency, a debt is sold to a collector. That is, the original creditor may make some attempt to collect, but then they sell the debt at a reduced rate to a collector.

Debt collectors make money by buying debt on the cheap and then collecting as much as they can.

So, by the time a debt is in collections, the original creditor has already made whatever they are going to.

Yes, there are rules for legally collecting debt. Including rules against jeopardizing your employment — or threatening to call an employer.

You can dictate how (or if) a collector communicates with you. You can also explicitly tell them they can’t talk with your employer or anyone else but you.

Depending on the size of your debt, a collector may take you to court — to obtain a civil judgment. This would ultimately allow them to garnish any wages you may have.

But — despite the claims of some collectors — they can’t order you to be put in jail. And, you have the right to show up in court and challenge the debt.

Oh, and believe it or not, some collectors collect on debt that isn’t owed or that has already been paid. Sometimes, just by making harassing calls or sending threatening letters, they can convince past borrowers to send them SOME money.

This, of course, is illegal.

All of which leads to my top-earning NewsBreak story from January:

Unlawful Debt Collection at Work: What Consumers Should Know - NewsBreak

The Consumer Financial Protection Bureau (CFPB) recently issued updated guidance on debt collection tactics, including the issue of debt…