Jun 5, 2009 6:07 am US/Eastern
Consumer Warning: Relentless Debt Collectors
They Will Often Go To Any Length To Collect Their Money, Even By Shaking You Down On Facebook
NEW YORK (CBS) ―
Last year collection agencies recovered nearly $40 billion in debt from Americans.
And now, it may get a whole lot worse as collectors ramp up their efforts to get their money.
It's one of life's most embarrassing moments -- a call from a debt collector. Now imagine that same collector calling your neighbors or family to track you down.
"I see this as a growing problem," said Beth Givens of Privacy Rights Clearinghouse.
As more Americans face ever-growing debt, consumer advocates say lenders are getting more desperate and aggressive to get to you and your money.
"Mail, e-mail, text messages," said Ken Paterson of Credit Advisory Service.
Collectors get access to relatives' and friends' information when they're listed as contacts on a doctor's form, when using a best friend as a reference on a credit application. It's all fair game.
"If you are in debt, know that there is a federal law that puts limits on the kinds of communications that debt collectors can have and it pays to really be informed," Givens said.
And check out your latest Facebook friends as well. They may not be anyone very friendly at all.
Jenny Anderson said she has 658 friends, but look a little closer and you'll see she's not really looking for social connections. It's how she tracks down debtors for her job.
Facebooker Williams Beck said it's an invasion of his privacy.
"I'm definitely not comfortable with it. I don't think it's right," Beck said.
And it's legal as long as the collector identifies who they are as Anderson said she does. But you can fight back, said consumer lawyer Justin Baxter. If they harass you -- that's illegal -- and should be reported to the Federal Trade Commission.
"Using any false, deceptive or misleading methods would be illegal under federal law," Baxter said.
If debt collectors do reach out to relatives, privacy experts said they can't ask them to pay your debt. They shouldn't even mention the call is about an unpaid debt.
To find out how to fight back under the Fair Debt Collection Act, please click
here.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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