Consumer debt is on the rise with many people facing a barrage of debt collection letters and telephone calls. As debts remain unpaid, more consumers are dealing with threatening debt collectors. As a result, complaints about collection abuse are also on the rise.

According to the Long Island branch of the Metropolitan New York Better Business Bureau (BBB), complaints almost doubled from 2006 to 2007. In 2006, the BBB received 344 complaints about collection agents. In 2007, the BBB received 639 calls.

In a recent Newsday article, New York City Department of Consumer Affairs commissioner Jonathan Mintz, stated complaints this year are “through the roof…disturbingly high.” So far this year complaints number 1,200. Last year the total number of complaints was 760.

Common problems reported by debtors include harassment, calling in the middle of the night, contacting employers and trying to collect a debt the consumer does not really owe. Mintz says agencies are trying to get money in quickly which, “unfortunately often leads to sloppiness on their own paperwork. The bad news for consumers is the data is exponentially less accurate.”

There are a few ways to keep debt collectors in line and out of your pockets.

Verify the debt. Never pay a debt if you’re unsure whether you owe it. Request evidence of the debt. Thanks to the Fair Credit Reporting Act, it is your right to request proof of your debt from collectors to ensure its accuracy.

Don’t admit to a debt if you don’t know. If you admit to a debt that is not yours, you will be responsible for it. Identity theft is on the rise. Request free credit reports from the three major credit reporting agencies to see what debts are listed and if they really belong to you.

Never authorize automatic withdrawals. When you authorize creditors to take money directly out of your account, you lose control over your cash. You may wind up overdrawn or paying debts you don’t owe. It can also be difficult to rescind access to your accounts.

Make payments. Work out a payment schedule to keep the account active. The debt will not disappear unless you make small payments toward the balance. Be aware creditors may still take action if you are not paying the minimum amount due.

Refuse to be threatened or harassed. To take your possessions, the collectors must first get a judgment issued by the court. Creditors cannot use obscenities, call all day, call in the middle of the night or call after you write a letter asking them to stop. They also can’t tell other people about your finances or attempt to collect more than you owe.

If you are facing debt collection and collection abuse, it’s time to take action. Contact an experienced consumer protection lawyer to find our your rights and options.

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Metro 2 is a credit reporting software system, and it is important to understand it so you know what goes on behind the scene of your credit report.

Businesses in the collection and credit industries who report consumer credit histories to the four credit report agencies must use the Metro 2 credit format. It was originally created in 1997 by the Consumer Data Industry Association (CDIA).

Metro 2 is designed to meet all the requirements of the Fair Credit Reporting Act (FCRA), the Fair Credit Billing Act (FBCA), the Equal Credit Opportunity Act (ECOA) and the Fair Debt Collections Practices Act (FDCPA).

Metro 2 provides a standard format to report all consumer information. The software performs validity checks on the accounts, insuring that the information entered is accurate, complete and compliant. It allows the collection or credit business to report information on consumers that cannot be located. Metro 2 makes provisions for the reporting of deferred payments and the transfer or sale of debt.

Metro 2 format software can be catered to specific industries and used by a business that has more than one industry. Businesses in the credit and collection industry must have their Metro 2 software tested and approved by each of the credit agencies that they report to. Accounts are submitted on a monthly basis and it is important that the software be kept up to date.

A third party consumer and business credit reporting service may be used by many businesses that carry accounts, such as jewelry stores or auto dealers. The credit reporting service will use Metro 2 to process the data into the correct format before submitting it to the credit report agency for the smaller business.

It’s important to remember that Metro 2 reduces everything to a 2-digit code.  If you have a dispute with anything on your credit report, the entire letter you send in support of that dispute is reduced to 2 digits.  If those digits are improperly entered then your dispute will be incorrect.  Say a lot in your dispute, plead your case, offer proof . . . it all comes down to 2 digits.

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