Friday, June 28, 2013
The Curse of Debt Collection Agencies
By Saeed Qureshi
In the United State, the networks of debt collection agencies operate like an oppressive mafia or ruthless cult that robs citizens of their peace of mind. Most of these operate as agents of creditors and charge a fee for collecting debts. These agencies buy the defaulted amount from the banks and other institutions on much cheaper price and make huge profits by retrieving these from the defaulters.
They employ various tactics to identify their victims and somehow reach the debtors or the defaulter even if his or her whereabouts would not be known. Without any compunction, they employ all the bullying and intimidating tactics to extract the defaulted money.
Through regular telephones and unremitting flow of letters, they keep on harassing their targets to such an extent that finally they are forced to borrow money to get rid of the perpetual torment inflicted by the rogue operatives of these agencies.
Perhaps their mechanism of discovering the names and telephone numbers of their targets is by first compiling a list of all the names starting with the first common syllable. They then call everyone one by one. They ask queer or intriguing question finally figuring out that the addressed person was the right one or someone else.
These agencies even find out the latest addresses and one may find a stinker all of sudden in the mail box. The language used in the letter is usually very menacing. The ordinary folks usually submit to their bludgeoning jargon and tough tactics and agree to pay the debt by installments.
By law there is a limit for every defaulted account to be cleared after mandatory period of seven years. So thereafter he can reopen his credit accounts with a clean slate. Such a person should be confident that onward he or she would not only be immune from repaying the debt but was now once again in a position to use the credit line.Although the hapless defaulter may have already paid the price by virtue of waiting for seven long years and stand cleared legally, yet the collection agencies keep pestering him or her for payment.
Instead of waiting for seven years, if the defaulter has paid the money in affordable installments to one agency he is still pressed by so many other collection agencies for clearance of the debts. He remains caught up in the vicious spiral of witch-hunting from the collection agencies who would be least concerned about clearance of the defaulter after completion of the mandatory waiting period. His peace of mind remains on the tenterhooks and he continues to face bullying calls and threatening letters from the collection agencies whose indecency and vulgarity is always boundless.
Instead of using the collection agencies for recovery of the unpaid money a complainant should take the defaulted person to the court and it should be at such legal venue that the matter should be decided. In case the decision goes against the defaulter, the court can fix a reasonable and affordable amount for the person concerned to pay and when the total amount is paid off, his or her name should be cleared and he should be able to restart his business or maintaining the credit accounts with an unblemished record.
A credit collection agency should not have unbounded audacity and free license to encroach upon the liberties and integrity of the citizens of this country. This system of bullying the defaulters is prevalent only in the United States. It has assumed most diabolic dimensions as countless individuals and families remain hard-pressed and know not how to escape from the constant chasing and hounding of these notorious outfits.
The officialdom in this country must be well aware of the horrific coercion that these collection agencies use to cow down the defaulters. These ruthless networks are allowed to work brazenly, although they should not have any legal standing or legitimacy for making the lives of the people hell and nightmarish.
It is imperative that here in the United States, the administration should enact laws to save the citizens from the merciless onslaughts of these so called debt collection agencies owned or manned by roughest, heartless and the most uncouth individuals.
As already pointed out if at all a bank or organization would want to collect their debt, they should initiate the legal cases against the defaulters themselves. If the person concerned proves his genuine ineligibility to pay the debt or pay in affordable installments, he should be allowed to do so and resume his business or job with a clear record.
Like HUD houses system the government can also pay for the outstanding debt of a defaulter but should keep him or her in the loop so that after getting a job or restarting his business he can honorably and conveniently pay off their debts.