Executive Credit Management, Inc.
Your Applicant Screening and Debt Collection partners for over 20 years
If a person owes your Company money it is a compelling thought to visit that person and demand payment, hopefully while the person is with friends, relatives or business acquaintances. You will get paid or tell everybody why you are there. You will either get paid or get revenge.
It may sound like sweet revenge, but it is illegal. If you do that it is YOUR Company who will be on the short end of the stick. Consumers are protected from In Person Debt Collection because it causes them substantial harm.
Most of us can remember an embarrassing moment made far worse when some friend or relative retold the story to people years later. ‘Remember when you were 13 and spilled Orange Juice all over your brand new suit at the Middle School Dance and wouldn’t leave your seat when Becky asked you?’
I’m quite sure you remember and needed no reminding. In Person Debt Collection does the same thing to people who don’t deserve that treatment any more than you.
The CFPD recently went after Ezcorp, a short term loan company for their debt collection practices, which were deemed in direct and obvious conflict with consumer protection laws. They caused undue injury to consumers who owed the company money. You are not allowed to embarrass a consumer into paying a bill, nor can you lie to them about your actions.
The company was charged with In Person contact with consumers for the purpose of obtaining payments. This act is considered extremely injurious to the consumer because it causes other individuals to find out about the consumer’s failure to pay a bill. These consumer damages are considered more than is reasonable because they are beyond the context of any contract and you cannot punish a consumer except by late fees, interest, legal fees and other direct costs associated with late payments.
If your Company uses In Person collection methods on consumers you should change your actions immediately. This is serious and the fine is large.
To read more on this topic:
http://www.jdsupra.com/legalnews/cfpb-takes-action-against-debt-35235/
