It’s bad enough when a company does such a bad job of keeping its books that it sends a customer to collections once for a bill she never owed. But it takes a special kind of stupid to pass that debt around like a hot potato until that customer has to prove her case four separate times. [More]
UPDATE: After Consumerist put Art in touch with T-Mobile, it was discovered that there was still — in spite of what he’d originally been told — a small balance on his account. They came to an agreement where Art pays for the service that he should have been billed for when he closed his account, while T-Mobile waives all other remaining charges and fees. The company says it will also notify the credit bureaus to undo the damage from having his account sent to collections.
In recent years, a number of U.S. states have crafted legislation intended to make sure that debt collectors are doing a thorough job of properly identifying debtors and proving that a debt is actually owed. But now these collections folks are fighting these laws because they apparently make debt collecting a less profitable venture.
For decades, U.S. debt collectors have plied their trade under the watchful but lazy eye of the Federal Trade Commission, which has the authority to go after the worst of the bunch but can’t create new rules governing these businesses. But later this summer, debt collectors will come under the supervision of the new Consumer Financial Protection Bureau… and that scares them, especially after complaints about debt collectors jumped 17% last year to 140,036.
The introduction of additional trigger criteria and attributes within Collection Triggers increases the ability for companies to act quickly when new information is available. Subscribers to Collection Triggers are notified within 24 hours when the financial status of a consumer within their collection portfolio has improved.
“Collection Triggers increases revenue by allowing companies to be first to the door of consumers who have improved their ability to pay,” said Zaydoon H. Munir, senior vice president, Experian’s Consumer Information Solutions. My, what a lovely industry. —MEGHANN MARCO
The McKenzies ordered two TVs from ShopNBC three months ago. The boxes arrived damaged and the family sent them back for a warranty replacement, which has yet to materialize. As such, the McKenzies haven’t paid for the tv sets.