News & Resources

More people now facing debt collectors

Jan 17, 2011 Kyle Duncan

More middle class families have been faced with mounting debt as the recession has seen many lose their jobs and get fewer hours to work. People all over the country have been hit hard and many have lost their jobs, and leaving countless people in debt to credit card and other companies. In order to try to collect the debt owed to them, many companies sell delinquent account information to third-party collection agencies. Linda Almonte, who previously worked for JPMorgan Chase, was terminated from her position after questioning the sale of 23,000 accounts to the other companies. As a result, she filed a lawsuit claiming that more than 11,000 accounts had been gone after without proper proof that they were delinquent. The case will go forward after a federal judge in Texas refused to dismiss it. A representative from Chase said that the company had done nothing wrong. "We have thoroughly researched these allegations and are confident that the sales of these loans were handled properly," said a company spokesman in a statement. While many everyday citizens are struggling with debt, the U.S. government as a whole is also facing significant debt issues. According to the most recent statistics, the government's debt is about to reach the $14.3 trillion debt ceiling.