State AG Writes Op-Ed on Debt Buyers

Minnesota Attorney General Lori Swanson has written an op-ed piece that ran over the weekend in the The Journal of International Falls, Minn. that focuses on debt buyers.

The piece, “Debt buying industry has seen explosive growth,” details Swanson’s actions against ARM companies and provides a primer of sorts for consumers on the debt buying industry, from the perspective of a state law enforcement body.

“What is a ‘debt buyer’?” Swanson asks in the article. “In today’s economy, many creditors — including credit card companies, utilities, phone companies, banks, and lenders — regularly sell to debt buyers old debts that they have been unable to collect. The creditors package these old debts into portfolios, which they sell to debt buyers for pennies on the dollar.”

Swanson explores the differences between debt buyers and original creditors, but does not draw a distinction between buyers and third party collectors.

She also details what rights consumers have and the steps they should take if they feel they have been treated unfairly in a collection process.