A recent CNN report found that special treatment is being given to debt collectors hired by government agencies. These collectors are charging steep fees and making threats, which include wage garnishment, foreclosure and even arrest. Other debt collection firms that are hired to go after credit card debt or auto loans are held accountable for such acts.
A senior member of the House Financial Services Committee is currently reviewing the report. He said he fears that low-income Americans are the most likely to suffer. The high fees leave many Americans unable to pay off their debts and afford their monthly bills.
The debt collectors are using power given to them by the government to pressure individuals into financial commitments they cannot afford. Unfortunately for consumers, the FTC admitted that the laws governing debt collection do not apply to the types of bills that government debt collectors pursue.
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