Increase in Illegal Debt Collection Tactics and Scams on the Horizon

The pandemic forced a record-breaking number of Americans to file for unemployment, but many already faced a financial burden – debt. Industry observers predict that as the market for collections grows, it will be paired with a rise in illegal, predatory debt collection practices and scams. 

“This remains a very fluid situation and a situation that is really threatening to many Americans who have far fewer financial resources than they did a few weeks ago but are facing the same number of debts or maybe even more if they’ve had medical care needs,” Legal Services Corporation President Ronald S. Flagg said. 

Several states, including Washington, Massachusetts, and Illinois, placed restrictions on wage garnishments during the pandemic, but widespread protections don’t exist on the federal level.

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