Bohemia, NY (PRWEB) February 15, 2013
On February 15, CEO of Rapid Recovery Solutions John Monderine reacts to an article published by Tulsa World with regard to the Federal Trade Commission (FTC)’s effort to curb debt buyers by providing better information of defunct debts.
According to the article posted by Tulsa World, debt buyers are the least-liked part of the debt collection industry. Debt buyers purchase delinquent debts from creditors at a fraction of what they actually cost and then try to collect on it. The article said sometimes debt buyers renew the default dates and trick debtors into making continuous payments.
The article said the FTC has been against these types of groups for a long time. On Jan. 30, the FTC released a report detailing companies participating in debt buying and how they attempt to collect on those debts, the article said. The report, called “Structure and Practices of the Debt Buying Industry,” analyzed "5,000 portfolios of consumer debt containing 90 million consumer accounts having a $143 billion face value.” Though most of the debt involved credit cards, the article said the study also looked at mortgage, medical, utility and telecommunications debt.
It revealed that much of the information debt buyers accumulate is incorrect. Because of this, the debt buyers often contact the wrong consumers, according to the article. It also found that debt buying affects consumer credit. The article said, “Debt buyers paid 4 cents on the dollar, getting older debt for less, for billions in debts from creditors. Proceeds reduced creditor lending losses, allowing them to offer more credit at lower prices.”
These debt buyers also failed to verify nearly half of all disputed debts, equaling about half a million debts per year.
John Monderine, CEO of one of Long Island’s leading commercial debt collection agencies Rapid Recovery Solutions, said debt buyers should start playing by the rules. “The FTC needs to regulate debt buying agencies and make them obey laws,” he said. “They inflate debts and renew default dates to squeeze money out of consumers that don’t have it. I hope this report will help Congress realize they need to start enforcing laws when it comes to debt buyers.”
Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of beautiful Long Island. Rapid Recovery Collection Agency is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We DO NOT alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.