How Bankers Can Protect Consumers Better Than Legislation Ever Could

Bankers have become popular whipping posts of the media and consumers in our post financial collapse world.

While some of the outrage is well earned, a good portion is the result of sharks they have allowed to take over their financial services pond.

Case in point – debt collection firms.

Because banks sell their severely delinquent debt to debt collection firms for pennies on the dollar, they have gotten in bed with companies who standard operating procedure is to make these bank customers live’s a living hell. Their torment includes: harassing phone calls, unethical tricks, intimidation and lawsuits.

While some attorney generals across the country are working hard crack down — notably Lori Swanson (MN), Roy Cooper (NC),  Greg Abbot (TX), Lisa Madigan (IL), Martha Coakley (MA) and Darrell McGraw (WV) — banks could single-handedly put an end to the abuse without a single piece of legislation needing to be passed.

How? By agreeing to only sell their delinquent debt to firms who have agreed to abide by the honorable debt collector pledge. The key elements of the pledge include:

1. To never attempt any collection effort on any credit card debt that is beyond the statute of limitation.

2. To never file a lawsuit for collection of credit card debt.

3. To never charge interest on a credit card debt that was charged off by the original issuer.

4. To never attempt to contact the consumer regarding credit card debt by telephone more than two times in any one 24-hour period.

5. To never resell credit card accounts to anyone who has not signed this Pledge.

To date 216 debt collection firms have signed this pledged and agreed to abide by it’s principles. If banks used their clout to pressure debt collectors to do the right thing, consumers would find their lives changed practically overnight… No legislation necessary.