I was over at Advance for LTC and came across this article which I think is timely and important to CNAs. It’s about debt collector practices and the law…in this econmony the author of this article offers some good advice. Advance For LTC is a web site for the LTC industry and they have some excellent articles- most about the industry of course, but every now and again gems like this slip in.

Beware the Collector

The area of “collections” is not something most folks ever get to know, and no one wants to learn about it by living through it. There are three kinds of collection agents: in-house, agency, and distressed debt buyers. Inside every major credit card or credit granting agency (GMAC, Ford Credit, Countrywide Homes, etc.) there is a collections department. These are generally good people who want to work with debtors to help them restructure their debt and avoid foreclosures and repossessions. In many cases they are successful. However, when they are not, they refer the claim out to a company that does business as a collection agency. A collection agency may be part of a law firm, or it may be a stand-alone agency that collects using the phone and letters. The conduct of these folks is closely regulated. The Federal Trade Commission investigates collectors who cross the line and break the Fair Debt Collection Practices Act.

It is the third tier of debt collectors, the “distressed debt buyer” that is the real challenge for consumers. Although it may not be obvious to most people, your account with Mastercard, your home loan, your delinquent phone bill, and your repossessed car note can all be sold to other persons. The legal term for this is the “holder in due course,” and the way it works is through a process called “assignment.”

Read the whole article.

So, keep this in mind if you’re being harassed by bill collectors. I often hear the words, “I can’t afford a lawyer”…but in situations like the ones described in the article, a lawyer would most likely be a lot less expensive than paying an old bill that’s been legally written off.