Public Utilities used to be able to sell 12 to 24 month old debt for 3 to 4 cents on the dollar to collection agencies. Now Utilities do good to get 1 to 2 cents on the dollar. There are an estimated 4,500 collection agencies operating in the US today. Most people would think that collection agencies would be running in high gear and making more money than ever. The reality is the hard economic times have rendered many consumers unable to cough up money as they have none to cough up.
Understandably the complaints about collection agency practices have more than doubled to 75000 this year as reported by the FTC. Many collection agencies will keep up with the clients for years until they find a job and continue rigorous collection practices to help bolster the bottom line.
So the next time you go to pay a collection agency, remember they didn’t pay much for that old debt and you have rights to keep these agencies from harassing you.
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