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Well, it’s back in the news, and Michigan Senator Carl Levin is behind the measure this time. A report, entitled Credit Cards: Fair Debt Collection Practices Act Could Better Reflect the Evolving Debt Collection Marketplace and Use of Technology, was released back in 2008 by three senators from around the nation to address the discrepancies within the Fair Debt Collection Practices Act and the aggressiveness of debt collectors.

A few days ago, Michigan Senator Carl Levin has brought the measure back to life after witnessing firsthand what unlawful and overly-aggressive debt collectors have done to his state. According to Levin, consumers are struggling now more than ever with credit card debt, and yet the debt collectors have been getting increasingly aggressive at a time when consumers can barely keep food on the table.

“The Federal Trade Commission receives more complaints about the debt collection industry than any other industry, logging in about 79,000 complaints on third-party debt collectors last year, which is almost 19 percent of all of the complaints it received. Ongoing abusive practices include trying to collect debt that isn’t owed or is beyond the statute of limitations, making harassing phone calls, threatening to make arrests that the debt collector has no authority to make, and collecting debt discharged in bankruptcy.”

While the Federal Trade Commission has begun cracking down on fraudulent debt collection agencies, Michigan does not feel it’s enough. Levin, and his colleagues, do not believe the Fair Debt Collections Practices Act is relevant anymore to our changing society. The act was written in 1977 when cell phones, email, and internet were non-existent. Things have changed, and those who are struggling with debt in Michigan are ready for the change to come soon.

Levin is suggesting and entire branch dedicated to consumer protection; the Consumer Financial Protection Agency, which will prosecute those debt collection agencies that do not follow the rules and keep consumers educated of their rights.

The debt collection industry is growing by leaps and bounds, and greedy, fraudulent minded businesses are doing whatever they can to leverage your debt for their financial gain. They are leaches who in 2003 purchased $57 million in debt from credit card companies. In 2006, that number grew to over $100 million purchased debt. It’s no wonder this industry is growing so rapidly.

ACCORD has begun a strong campaign, reaching out to legislators and lobbyists, working towards creating a program that would help consumers get out of debt for less. In effect, the program that they are lobbying for would charge consumers struggling with credit card debt no upfront fees. It’s going to change the industry, and by protecting the consumer, charging no upfront fees for debt settlement services, they are affectively taking the power away from the debt collectors.

For more information on getting out of debt for less, give us a call and ask about The Simple Plan. As an ACCORD member, we proudly offer this program. Call today! 1-877-386-3603