THANKSGIVING WEEKEND: Traffic | Travel Guide | Weather | Holiday Guide | Mall Hours

Post-Hurricane Cleanup Means More Business For Debt Collectors In Bad Economy

PHILADELPHIA (CBS) – The struggling economy means debt collectors have more business than ever. The recent floods from Hurricane Irene and Tropical Storm Lee, means more Pennsylvania consumers are feeling the pinch.

“Individuals just don’t have the ability to pay right now,” said Harry Strausser, President of the Mid-Atlantic Collectors Association.

He says debt collection accounts are up, but consumer ability to pay up is at an all-time low.

“Consumers tend to find themselves in more and more debt because of this being a national economic downturn.”

Strausser says over the past three years, other states fared far worse than Pennsylvania. But now, damage from Irene and Lee is squeezing the Commonwealth’s consumers.

“You’ve got segments in eastern Pennsylvania now that have been hammered even harder and that will effect their economic ability to pay.”

Strausser says debt collectors are working with consumers and, depending on the type of debt, will take payments as low as $5 or $10.

Reported by Cherri Gregg, KYW Newsradio 1060

Top Content On CBSPhilly

More from Cherri Gregg
  • Consumer Advocate

    Taking payments of $5 or $10 is an old trick used by debt collectors to extend the statute of limitations (the time they can sue on the debt). Even a small payment “starts the clock” over again and gives them another 4 years to attempt to collect here in PA. Don’t do it!

    • I'mJustSaying

      You’re so right. I was once harrased by a dept collection company for several years by phone and letters because of a hospital bill ($283.27) from a few years back that I had lost track of due to moving. I got a call one evening and had arranged to pay the half amount they had offered which was $50 per pay then the balance on the last payment. Well, don’t you know after I made the last payment, they came back for the other half even though they would forfeit that half as long as I kept my word and paid the half that we agreed upon. And I looked at my Credit Report and the hospital bill was never even credited with the $283.27 that I paid faithfully. They are SCAM ARTISTS so, I agree with you. DON’T DO IT. They just want to be able to come after you and keep your credit status active so that you have bad credit. They take your money and they don’t even apply it to whatever you are paying off. Needless to say, after that happened 10 years ago, I don’t have any problems with those types of people anymore, but, if I can’t pay something, I go directly to the company itself and make arrangements.

      • I'mJustSaying

        (Sorry for the book) LOL

blog comments powered by Disqus
Taz Goes Big!
Download Now!

Listen Live