FTC calls for reform in debt collection law suit practices.

[HHM]

http://www.ftc.gov/os/2010/07/debtcollectionreport.pdf.

http://www.ftc.gov/opa/2010/07/debtcollect.shtm

[Adventura]

Here is a good article relating to this issue from the NYT:

http://www.nytimes.com/2010/07/13/business/13collection.html

[ColoradoBell]

I can relate: a debt collector filed suit in county court against me for a debt that wasn't mine and was past the statute of limitations. He asked for summary judgment, didn't offer any proof that he had purchased the debt from orginal creditor nor did he have any contract to back up his claim (The contract he entered was in the name of another person,another address, a year after I completed my business with the company.

I responded but the judge granted the judgment with attorney fees at 18%.
I couldn't appeal because I would have had to come up with $15k (for a supposed 3k debt but with added interest and fees).

The debt collector garnished my alimony...but I sent him the statute that alimony is exempt from garnishment. Then he liened my house...twice for the same debt that was never mine in the first place.

I think these debt collectors might be paying a % to the court to get their summary judgments.