How Do Collection Agencies Make Money in St. Louis?
The way in which a collection agency or debt collector makes money in St. Louis County and Jefferson County, Missouri, is pretty straightforward: it buys up old, delinquent debt from the original creditor (say for instance an old hospital bill or credit card), then goes out and collects on that debt. But when the collector purchases this old debt, it does so for pennies on the dollar.No Upfront Fees Required. The Collector Must Pay For Your Attorney Fees
So for instance, if you had an overdue medical bill for about $3,000 that you could not pay on, a collector will end up purchasing the debt for about $100 (literally, for pennies). But they can still collect on the full $3,000. This means that if they are successful in getting the full debt that is owed, the collector will have made an incredibly large profit.
It is just that simple. The collection industry is enormously profitable, and many of the larger organizations are publically traded on the stock market. This is also the reason why there are so many collection agencies out there. Some play by the rules; many do not make any attempt whatsoever to obey the law.
But either way, all debt collectors and collection agencies are subject to the Fair Debt Collection Practices Act (FDCPA). This is a federal statute that regulates all collection activity by collectors in this country. The rules that are laid out in this law are very concise and clear. In fact, the FDCPA is so clearly written that anyone who takes the time to actually read it will easily understand what is considered unlawful collection activity.
But unfortunately, many collectors do not seem able to follow these rules with much success. The main reason for this unlawful conduct is also straightforward: if a collector were to strictly adhere to the rules set forth in the FDCPA, and follow them religiously, the collector would probably not make much money.
If in fact a collection agency were to follow the law completely, they would have to make you aware of your federal consumer rights under the FDCPA every time they tried to contact you (whether it is a voicemail message, a collection letter, or a direct phone call to your home). If the collector followed the FDCPA properly, they would not make any threats to you (like a wage garnishment, or a lawsuit against you, or criminal charges). If the collector were to take the law seriously at all times, it would never harass you in any way (like constant phone calls to your home or cell phone, or threats that they will report your debt to a credit bureau). And if the collector took the time to read the FDCAP, it would not try to contact someone other than you about your debts (like your friends, family members, neighbor, or co-workers).
Our firm makes sure that your consumer rights are protected under the FDCPA. If a collector violates your rights, it must compensate you with $1,000 in damages. In addition, it must also pay for all of your attorney fees. This means that you will never have to come up with any money to hire a law firm to represent you to defend your rights.
You may also consider a St. Louis bankruptcy or a Jefferson County, Missouri, bankruptcy. Such a filing will eliminate all of your unsecured debt in a St. Louis Chapter 7 bankruptcy, or will restructure your secured debts in a St. Louis Chapter 13 bankruptcy. Either way, the affordable St. Louis bankruptcy attorneys at The Law Office of Jennifer Alter-Rieken have been assisting people for over ten (10) years. The initial consultation is free of charge. So contact us today to learn more!!