Oregon State PIRG (OSPIRG) Consumer Associate Matt Wallace is teaming up with Attorney General John Kroger to improve consumer protections against unruly debt collectors who may violate the law because they don't fear repercussions. (Statesman-Journal). Here is the AG's testimony in favor of legislation also backed by OSPIRG.

As the economy cools off, the phone threats from debt collectors heat up. While most people try to pay their bills, sudden layoffs, medical debts or family emergencies often make it hard. Worse, the resale of old debts to a daisy chain of often seamy debt-collection mills often results in demand for payment of very old debts well beyond the statute of limitations and in mixups, where debt collectors abuse others who don't have debts but do have similar names. These "debt collector trade lines" often end on credit reports; frustrated consumers who never owed or no longer owe will often pay a harassing creditor, just to improve their scores. Using the threat of ruining your credit report is just one of the unsavory tactics of debt collectors.

In recognition of a history of widespread abuses by some companies and third-party collectors attempting to collect debts, legislators and regulators have used laws such as the Fair Debt Collection Practices Act to make the process fair. But it often isn't. We need strong state enforcement and authority as the Oregon proposal would provide and we also need stronger consumer rights to sue debt collectors who abuse the law. No debt collector should be above the law. Most think that they are, especially bottom-feeder debt collection mills that buy really old debts.

For more information about your debt collection rights, read this handy fact sheet from the National Consumer Law Center.