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Released: August 20, 2012
Aggressive debt collection tactics drawing federal scrutiny
Source: Jim Puzzanghera, L.A.Times (Free Registration)Hard economic times have helped push millions of Americans deeply into debt, plunging many into a dark world filled with relentless collection agents, aggressive lawyers and companies that profit mightily if they can get people to pay up. Aided by outdated laws and lax oversight, debt collection has become a $12-billion-a-year business as people increasingly have fallen behind on their bills for credit cards, student loans, hospital stays and other expenses. Federal regulators, along with lawmakers in California and several other states, are starting to take action against debt collection firms over aggressive tactics that authorities said are becoming rampant.
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