Consolidated Credit Consumer Alert: Deficit-Reduction Plan Would Allow Federal Debt Collectors to Contact People on their Cell Phones
Posted in Consolidate Debts on 11/15/2011 05:59 pm by
Consolidated Credit Consumer Alert: Deficit-Reduction Plan Would Allow Federal Debt Collectors to Contact People on their Cell Phones
Ft. Lauderdale, FL (PRWEB) September 29, 2011
President Barack Obama unveiled the new deficit-reduction plan last week in an effort to cover the costs of his jobs bill, but Consolidated Credit Counseling Services, Inc. experts want to warn Americans of new details regarding the way debt collection agencies can contact debtors. According to page 26 of the deficit-reduction plan, debt collectors pursuing government-backed debt (i.e. mortgage loans, unpaid taxes and federal student loans) will have the authority to contact debtors via their cell phones.
With an idling economic recovery the political focus has been on two prominent agendas: the jobs bill and the excised increases included in the deficit-reduction plan. Little spotlight has been given to an alteration to the Communications Act of 1934 which would let government backed debt collectors to contact debtors via their cell phone. “There are pros and cons to this change that Americans need to be aware of — on one hand, debt collectors will most likely be able to generate more money and possibly stimulate our sluggish economy. On the other hand, many Americans may incur additional phone expenses if debt collectors call several times a day causing consumers to go over-the-limit on their minutes and the debt collectors may cause disruption to people while at their work place,” told Howard Dvorkin, CPA and founder of ConsolidatedCredit.org, a home credit counselling agency and fiscal literacy provider.
There are other factors that Consolidated Credit wants consumers to be aware of concerning this new piece of legislation. “If we equip government fiscal entities more leeway to amass debts, it is simply a matter of time before all collection agencies demand the same access to consumers who mortgage money on prominent debts. It’s unrealistic to infect government debt agencies the privilege of contacting debtors via cell phones but not individual creditors,” Dvorkin, continued.
Consolidated Credit cautions Americans that if the bill does become law, debt collectors may become more strong-growing in their methods of communication and may move advantage of their unexampled found authorization. “Some debt collectors have poor reputations and in many cases, it is well deserved. The Federal Trade Commission assembles an annual list of consumer complaints and nearly every year, debt collectors come in at No. 2. Last year alone, the FTC received 119,549 complaints about debt collector practices,” Dvorkin stated.
To learn more about the rights citizens have when it comes to dealing with debt collectors, visit the Federal Trade Commission’s website to learn about The Fair Credit Reporting Act.
About: Founded in 1993, Consolidated Credit has helped more than 5 million families away of debt. Consolidated Credit provides personal seed educational assistance, fiscal wellness programs, budgeting assistance and debt management plans throughout the United States. Consolidated Credit is a member of the Association of Credit Counseling Professionals, a member of the Better Business Bureau and is ISO 9001 registered and accepted world-wide.
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