OBAMA, DEBT COLLECTORS, AND CELL PHONES



More and more people these days are getting rid of their landline phones and going exclusively with cell phones. Almost everyone has a cell phone now and why pay for a land line that you hardly ever use?

This has become an increasing problem for debt collectors because as the law stands now, they are not allowed make computer generated (robo-calls) to cell phones to remind people they owe money. Collection agencies have their hands tied behind their backs when it comes to contacting households that owe money and only have a cell phone number as a contact.

In response to this problem, President Obama has proposed new rules that would allow robo-calls to cell phones from collectors trying to recoup money owed to the government. This would allow more people to be contacted and presumably more money to be collected. Right now, it is clear our government needs to be able to collect on all of its debts and allowing these cell phone calls would help greatly, at least in the mind of the President.

There is a problem though, as the debt collection industry has long been under the microscope for the way it goes about collecting money owed. Consumer watchdog groups and the FTC have monitored the collection tactics of many companies which in some cases can be described as harassing and threatening. These consumer groups are fearful that Obama’s new regulation will, if passed, open the doors for more strong armed collection tactics as debt collectors start calling cell phones for the first time.

Some Democrats are unsure how to proceed as they want to support the President but many of them do not want to align themselves with the debt collection industry in any way. It is a difficult decision which has come about by the advancement of technology and people’s switching over to cell phones from the traditional landline phone that has been around since the telephone was invented.