How Debt Collectors Operate in Clearwater Florida

Consumer Credit in the U.S.

With outstanding consumer debt in the United States having doubled over the last twelve years to $2.5 Trillion in 2009, the collection industry has grown significantly. While the extent of serious delinquencies fluctuates with business cycles and unemployment, the typical default rate on unsecured credit issued by banks, retailers, credit unions, and finance companies is around 2-3%.  However, at the onset of the current financial crisis, the delinquency rate went from 2.21% in 2006 to 6.52 % in 2009 for consumer credit cards, and 1.12% for residential loans rising to 9.1% in 2009. These numbers are consistent with the delinquency rates in Florida and in particular, the Tampa Bay Area of Florida, which includes the likes of Clearwater and Saint Petersburg.

Financially Distressed Consumers

The major causes of serious consumer delinquency have been shown to correspond with an increasing incidence of unemployment, illness, and marital problems.  A contributing factor has also been the credit industry’s overextension of credit and accordingly, predatory lending practices among unwary consumers.  The federal Fair Debt Collection Practices Act (FDCPA) and other state consumer protection laws, such as the Florida Consumer Collection Practices Act (FCCPA) have been enacted to protect debtors from abuse and harassment by collectors. Often, the targets of debt collectors are lower-income, minority consumers who are unable to afford the fee to retain a lawyer and file for bankruptcy to obtain bankruptcy’s promise of a fresh start.

Abusive Debt Collection

The objective of Debt collectors is to first identify the portion of delinquent consumers who can afford to repay some or all of their debts, and second to convince consumers to pay the particular collector before paying other creditors or even the consumers’ own living expenses.  These efforts often include extreme measures to coerce consumers into paying on the delinquent debt.

Common abusive and illegal collection tactics include:

(1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.

(2) The use of obscene or profane language or language meant to abuse the hearer or reader.

(3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency.

(4) The advertisement for sale of any debt to coerce payment of the debt.

(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.

(6) The placement of telephone calls without meaningful disclosure of the caller’s identity

If you reside in Tampa Bay, St. Petersburg, or Clearwater and have been contacted by debt collectors, please contact The Pikramenos Law Group at 813-413-1300. Under the FDCPA and FCCPA, you may be eligible to avoid your debts and/or receive money as a result of unlawful collection tactics. We also offer personal bankruptcy services, which may serve to forgive your debts and give you a fresh financial start!

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