There is an increasing trend in the collection business --- outsourcing the collection work to call centers in India, Romania, Mexico, and the Philippines. Collection Agencies and Junk Debt Buyers are finding that the call centers in these countries are quite effective in their collection efforts, and at a fraction of the cost of using employees in the United States. These call center reps are trained to be firm but empathetic. They are also using the tax rebates that are currently going out as leverage to collect. Not a bad strategy - it's a lot harder to say you can't pay an old collection because you're broke when you and your husband have $1,200 coming your way.

With collection calls, the first question is often how do you get them to stop?
 
The first thing you should do is familiarize yourself with the

Fair Debt Collection Practices Act (FDCPA). The law is intended to regulate how and when Collection Agencies attempt to collect on a debt. If they are acting outside the bounds of what the FDCPA allows, a properly drafted letter sent certified mail with a returned receipt will often help in reducing the harassment. Another popular strategy is to request the Collection Agency to validate the debt. Essentially, if they are unable to provide you with the following, they are unable to collect on the debt:
 
1) Proof that they own the debt or have been assigned the debt.
2) Complete payment history, going back to the original creditor.
3) Copy of the original signed loan agreement, credit card application, or contract.
 
Since many Collection Agencies and Junk Debt Buyers are now buying old debts in large quantities, they often have nothing more than a spreadsheet with contact information and amount owed. They are unable to validate the debt and must cease collection activities and stop reporting the information to the credit bureaus.
 
If you are planning on taking a Collection Agency on, be wary....Collection Agencies seem to be more aggressive with the threat and filing of lawsuits against consumers these days. While most will back down from a well informed consumer, some will try to bully you with threats of legal action. The best way to know your rights are being protected and enforced is to consult with an attorney familiar with this area of the law.

Other Resources: