Wednesday, July 30, 2014

Study Says 35% of Americans Facing Collection Agencies



According to a recent study released by the Urban Institute, more than 35% of Americans have debts and unpaid bills that have been reported to collection agencies.  These adults owe an average of $5,178.00. The full study can be found here.

The study reveals that the East South Central census region (which includes Kentucky) has the second-highest percentage of people with a debt in collections, with 41.3% of people having an account in collections.

Debt collectors do not just collect unpaid credit cards, but a wide-range of debts such as:
  • MEDICAL
  • cell phones
  • utilities
  • gym memberships
  • book clubs
The Fair Debt Collection Practices Act (FDCPA) applies to debt collectors, and limits the actions they can take in trying to collect a debt.  I have litigated a large number of FDCPA cases, and it is vital that debt collectors be held accountable for violations of this important federal law.  I do not charge people for consultations regarding whether their rights under the FDCPA have been violated.

Every case is different, but many people facing debt collectors ultimately end up filing bankruptcy as a way to protect themselves, and to begin the process of rebuilding their credit.