According to the Federal Trade Commission, the second highest type of all consumer complaints for the past two years has been complaints about third-party debt collection
Overland Park, KS (PRWEB) July 15, 2010
CollectionTree.com, the site that compares collection agencies apples-to-apples and helps businesses collect from non-paying customers by matching them with collection agencies, is now launching a new set of standards for the agencies it works with. The new code comes as a response to a growing problem in the United States, namely, poorly behaving collection agencies.
"According to the Federal Trade Commission, the second highest type of all consumer complaints for the past two years has been complaints about third-party debt collection," explains collections expert and founder of CollectionTree.com, Ryan Neuweg. "We want to help change this."
CollectionTree.com works with a growing list of collection agencies, matching them with businesses that need assistance collecting bad debt. Now, in order to protect their customers, they are tightening the code of conduct for all agencies they work with and are creating an auditing process to certify they adhere to it.
"While the U.S. has seen many problems with debt collectors in recent years, the collection industry itself remains essential. Businesses must get paid by their customers to survive," Neuweg stated.
CollectionTree.com's new code of conduct is intended to guard its users from collection agencies that could do them harm. By connecting users with reputable agencies, CollectionTree.com saves them the risk of collection agencies acting poorly on their behalf and potentially harming their business or their clients.
CollectionTree.com will certify, among other things, that all agencies are licensed in the location that they are trying to collect, as 30 states as well as the District of Colombia, Buffalo, NY and New York, NY require collection licenses. CollectionTree.com will also assure that agencies are working to collect debt both thoroughly and appropriately, not violating any of the restrictions placed upon them by the Fair Debt Collection Practices Act, Gramm-Leach-Bliley Act, Fair Credit Reporting Act, or Health Insurance Portability and Accountability Act .
According to Mr. Neuweg, "CollectionTree.com's new collection agency standards will help to revive integrity and transparency within the collection industry."
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