Debt Collection: Almost 30 million Americans are currently being pursued by debt collectors, usually for amounts around $1,500. Debt collectors may use legitimate ways to collect debts, but unscrupulous firms use illegal tactics such as threatening consumers, refusing to verify disputed debts, and more. Debt collectors generate more complaints to the Federal Trade Commission than any other industry.
Debt Buying : Debt buyers are specialized companies that purchase delinquent debt from an original lender for pennies on the dollar, and then try to collect the full amount. The primary tactic of these debt buyers is to sue the consumer, without determining that the consumer actually still owes the debt or that the amount is correct. By obtaining a court judgement against a consumer, the debt buyer can garnish their wages or place a lien on their property.
Debt Settlement: Debt settlement companies promise debt relief to financially-stressed families with claims that they can settle debts for less than the amounts owed. But these programs can be expensive and are often not successful, leaving the consumer in a worse financial position than when they started.