From Yahoo News:

law enforcement and consumer groups point to a dark side: Buffalo, they say, has also become a center for some of the worst elements in the business. Debt collectors, some of them convicted felons, have illegally posed as lawyers or unlawfully browbeat people — threatening to have them arrested or stripped of custody of their children — to scare them into making payments.

“Get some clean clothes because you’re not coming home any time soon,” one debtor was told.

As the sour economy leaves people less and less able to pay their debts, the collection abuses have become so flagrant and numerous that state and federal authorities have moved to shut down several Buffalo-area agencies where the most heartless and bullying telephone calls originated. At least 20 people have been sued or arrested on criminal charges.

If you believe you have been harrassed, contact an attorney to see what rights you have under the Texas Finance Code, which is designed to protect consumers from unscrupulous debt collection tactics.

In some cases, the debt collection agency that is contacting you may not be bonded in Texas and may not have the legal right to collect debt from Texas residents.

Click here to find out if the debt collection agency is legally collecting debts in Texas…

A U.S. agency charged with consumer protection has sent surveys to nine companies that buy 75 percent of U.S. consumer debt to try to determine whether they are working with accurate information.
Debt collectors frequently try to collect wrong amounts or contact the wrong consumer, the U.S. Federal Trade Commission said on Tuesday, adding that it wanted to determine if the companies buying the debt contributed to the problem.

“Many debts are purchased and resold several times over a period of years before all collection efforts finally cease,” the FTC said in a press release.
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Debt collection companies typically buy bad debt from banks and other financial institutions at pennies on the dollar and then aggressively pursue repayment.

The industry has faced increased scrutiny from state regulators who have been trying to make it harder for debt collectors to make recoveries.

If you believe you have been mistakenly contacted by a debt collection agency, or the debt in question is inaccurate, you can exercise your legal rights under Texas Finance Code to stop collection attempts.

Mortgage rates are continuing their creep upward in a trend that well may choke off a recent refinancing boom and provide a test of the strength of the housing market in 2010.

Freddie Mac’s widely watched survey found that rates averaged 5.14% this week on 30-year fixed-rate home loans for borrowers with good credit and a 20% down payment — or 20% equity for refinancings. That was up from 5.05% last week and slightly higher than at the same time last year.

With rates still considerably low, and the possibility of an extension in housing tax credits, this may be a good time to lock in a low interest rate.

With stimulus packages slated to continue throughout 2010, the possibility of interest rate hikes at the Federal Reserve is becoming more likely. Any such hikes in the The Federal Reserve’s rates would also boost mortgage rates higher.

Better credit scores, mean better mortgage rates. Learn more.