|Received:||1/9/2010 12:02:36 AM|
|Agency:||Federal Trade Commission|
|Rule:||Protecting Consumers in Debt Collection Litigation and Arbitration: A Series of Roundtable Discussions" - August, September, and December, 2009|
Comments:Collection firms take advantage of a significant percent of Consumers as shown by the 90% win rate in lawsuits due to no defense being offered by the consumer in the suit due to their fear or lack of understanding of their rights. My suggestions to help protect the consumer: The $1,000 penalty FDCPA allows against Collectors should be increased to $10,000 to provide those consumer debtors who are wrongly accused a minimum restitution. If a financial institution plans to sell the debt of a consumer debtor, that debtor should be allowed the first right or opportunity to pay off their debt at the same price the debt buyers would pay for it, currently 2-3 cents on the dollar. It is unfair for collection companies to report debt they buy that may be 1,5, or 10 years old as current past due debt (which is what they do now) because this starts a new 7 year period during which firms like Equifax will report this as new debt. This is unfair and must be changed because otherwise consumers can not repair their credit for an additional 7 years every time an old debt is bought by a new firm. Debt bought by collection firms should be taxed by the government to help pay for the hundred of thousands of individuals who can not afford to hire an attorney to defend themselves against a lawsuit brought on by the collection company buying the debt. There should be a limit to the number of calls a collection firm can make in one day.