Write a report about current legal issue related to business law

They call people late at night , or early in the morning , making threats to make them pay for debts that they 've either paid or didn 't incur They utter obscenities and threats . Some go as far as humiliating people , obtaining cellphone records to call family and friends (Chan 2006 ,

.1 . They call repeatedly , often making abusive statements These are not the Mafia or a local Yakuza , but debt collectors

Debt collectors , especially at a time of recession , are multiplying The New York Times writes that by 2016 , there will be half

a million people working as bill collectors , a 23 increase over a period of ten years . That estimate is bound to get bigger with the current slump in the economy . In 2005 , the Times adds , debt collectors made 51 .4 billion in collections (Streitfeld , 2008 ,

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But just as the bottom lines and career opportunities balloon in this industry , so did the complaints . In 2006 , the Federal Trade Commission said it received 69 ,204 complaints against debt collectors , a figure that more than quadrupled the numbers recorded in 2001 (Streitfeld 2008 ,

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Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act , however , protects consumers who are hounded by these unscrupulous collectors . The Federal Trade Commission has authority over the act

The act specifies that a collector can only call between 9 A .M . and 8 br

.M . Collectors are not supposed to call at the place of employment if they know they are not allowed to take calls there . The collector cannot call a third party - including , friends or family - about the consumers ' debt . What 's more collectors are barred from communicating with a consumer if the consumer is already represented by a lawyer (Jewel , 1988

Consumers can also advise the collector in writing that he is not going to pay , at which point the collector should stop communication (Jewel 1988

The act is also very specific on prohibiting abuse or harassment , and lists prohibited conduct , including : threats of violence , use of obscene or abusive language , publishing the names of people who defaults advertising the sale of debts , prolonged ringing of phones , not properly identifying oneself (Jewel , 1988

Violation of the act can lead to a collector being sued for actual damages , plus additional damages (Jewel , 1988 . The FTC posts guidelines on filing a complaint at its Web site at HYPERLINK "http /www .ftc .gov /bcp /conline /pubs /credit /fdc .shtm http /www .ftc .gov /bcp /conline /pubs /credit /fdc .shtm

The laws are clear , and the FTC 's enforcement of these laws are not wanting . Yet the problem persists . It is surprising that despite the rising incidents of abuses among debt collectors , the legislature and other concerned policy-making bodies have not amended the law to be more stringent , both in the implementation and penalties

References

Chan , Sewell (2006 . An Outcry Rises as Debt Collectors Play Rough . New York Times . Retrieved on 5 May 2008 .Jewel , Gary L (1988 . Collect With Care . American...