Debt Collection Agencies Step Up To Bat As Young Adults Slip More And More Into Debt
For American individuals just starting out, the most current analysis of trends in our economy points to the fact that incomes are decreasing. Many financial analysts and leaders in the collections industry have reason to believe that this paradigm change will be a permanent one. Out of all of the demographics in the United States, young adults are the most uninsured when it comes to health care coverage. A massive thirty percent of these individuals have absolutely no insurance to speak of. And even though a large portion of uninsured young people are employed, many have just begun their careers and work at low wage jobs for employers who offer limited or no health care benefits.
From the perspective of the collections industry, this new economic change has the capacity to have massive ramifications. With this many young adults currently scrambling to pay for day to day expenses, let alone medical bills, analysts are predicting that their personal debt will blow up to massive proportions. As health care prices spike it is key to keep in mind that uninsured young people are twice as likely as those with privatized health insurance to have little to no education beyond high school. Not only will these people not have coverage, but their lack of education will limit their earnings potential in the future as the job market grows more and more competitive. This, coupled with young people’s financial inexperience makes them prime territory for debt collectors.
Yet another factor is the credit industry itself. With the CARD Act and America’s financial woes, stricter credit standards have been imposed and will most likely make it more difficult for many young people to obtain credit or loans for “good debts,” any type of productive debt that could improve an individual’s situation such as a mortgage for a home or a loan for post graduate education. As debt collectors struggle to wrap their heads around all of the economic changes, advances in technology make debt collection practices and their regulations (The Fair Debt Collection Practices Act) seem dated. One blaring example of this fact is the existence of cell phones. The FDCPA was written in the 1970s and as a result does not have stipulations guiding cell phone calls, and it is estimated that over forty percent of consumers do not have landlines at this moment. Out of everyone, young people are the least likely to have landlines and therefore the trickiest to get in touch with.
One way that leaders of the collection industry are attempting to address this difficulty is by creating more methodical profiling systems to aid debt collection companies when they are trying to collect on these accounts with an active cell phone number. Better, more efficient communications with credit bureaus will help them determine if the debtor has obtained a new address or phone number.
Because this is a time to think outside the box, the collections industry can be likened to the wild west. It seems that these days, anything goes.With advances accelerating faster and faster, the smartest debt collection agencies are gearing up for younger adults, attempting to use the ways that these individuals prefer to do business and communicate. Some bill collectors are thinking about utilizing text messages, and many companies have recently added online systems to their businesses that permits consumers to make payments over the internet, rather than deal with a bill collector in person or via United States Postal Mail.
Rapid Recovery Solution is a credit collection agencies
Super Bowl Scams Arrive As The Landmark Game Approaches
Be diligent if you are attempting to buy tickets to Colts-Saints game. Con-men love to take advantage of the fans. Travel scams in all types of sizes and shapes come out of the woodwork whenever there is a landmark sporting event.
Just last year there was an email that was mailed out in Pennsylvania trying to fool Steelers fans. Claiming to be from the Visa Super Bowl Winning Contest, with an NFL logo on top, the scammers promised $100,000 to fans and two Super Bowl Tickets. Sounds too good to be true? That’s because it is. The catch was that in order to retrieve their prize the fan had to wire the email senders $3,000 to cover taxes.
Already, there are emails being sent through the internet about the upcoming World Cup. One promises three free tickets and two million dollars. Even though there are spelling errors throughout and a sub-par cut and paste job with the World Cup Logo, there are bound to be a number of victims.
Another ploy to keep an eye out for is the postcard scam. Postcards promising packages similar to the ones just mentioned, on “travel certificates.” One thing to keep in mind is that unethical scam companies are able to cut and paste logos or art that they want to use, lending a false sense of authenticity to whatever is being sent out.
Lastly, there are travel “certificates” that say that you’ve won a trip to the Super Bowl and a great Super Bowl package, complete with hotel room. But the hotel you get to is a dump, and you have to book your airline tickets through the “contest office,” and these tickets are way more expensive than you could get on your own. And the kicker is, once you have arrived at the dump of a hotel, you find out that the package never included tickets to the game.
Mallory Megan works for a debt collection company. She also composes articles on business, finance, consumer spending and collection agencies.
Irish Gang Branches Out Into Bill Collection
And you thought your bill collections agency was bad enough. It has been recently disclosed that a gang boss in Ireland has made a new career move – debt collection. This criminal genius has been linked to twelve murders; a threat even more serious than a collections letter.
Usually, legitimate creditors who aren’t criminals will hire out third party bill collectors to retrieve debts. Collection agencies work on commission, where they receive a portion of the amount of money that they collect. Frequently collection companies will purchase debt from the creditors so that they can collect the whole sum of money owed.
The Irish gang members seemed to have gotten inspiration from this practice, but the similarities end there. The boss of the disreputable Irish gang has created his own collection agency, purchasing debt and using his notoriety to bully his way into gathering the money owed. The unlucky debtors are drug users who are unable to repay dealers.
Lawful collection agencies will generally start with a gentle “reminder letter.” If the debtor is hostile or evasive, the letters will become sterner. Phone calls are used as well to remind those who owe money to pay up. If these tactics fail, the agency has the right to report a debt to credit bureaus, or file a lawsuit.
On the other hand, the Irish gangland bill collection agency will utilize its reputation as a group of ruthless murderers and crooks to intimidate debtors into paying back drug money. Thankfully, the head of this operation has been arrested, and the Justice Minister of Ireland has promised to do everything in his power to guarantee that the accused will be brought to justice.
So next time you get a letter from a collections agency, try to keep things in perspective. And if you are ever in Ireland, it is probably not smart to take out a loan with a notorious gang.
Mallory Megan is employed by a debt collection company. Also she writes stories on business, finance, consumer spending and collection agencies.