Sunday, September 16, 2012

The Attorneys General Partners

More than three years ago I wrote about the partnership between debt collection companies and state attorneys general.  As state finances have gotten worse in that time, more attorneys general have become partners with these companies.  And merchants have become so used to the partnerships that they do not always contact the attorneys general, they simply send the bad check to the collection agency, which sends to the check writer what looks like a legal letter from the authorities.  The letter not only asks for the amount of the check plus fees; it also almost demands that the writer attend a class on budgeting and financial accountability presented by the agency. Whether or not the writer is guilty of a crime does not always factor into whether these threatening letters are sent.

It's a profitable business even though its ethics are highly questionable.

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