One of the main reasons why so many people seek the fresh financial start offered by either Chapter 7 bankruptcy or Chapter 13 bankruptcy is the automatic relief it provides from overly aggressive and discourteous debt collection agencies.

However, even if a debtor has not yet decided to file for bankruptcy, he or she is still entitled to some basic legal protections. For example, the Fair Debt Collection Practices Act (FDCPA) prohibits debt collection agencies from using abusive, deceptive or even unfair practices to collect debts. Similarly, debt collection agencies are currently subject to certain restrictions when it comes to cell phones.

Specifically, while debt collection agencies can call cell phones to inquire about money owed, they can only do so when they manually enter the number. While this may perhaps seem like a rather insignificant obstacle, consider that many debt collection agencies rely upon automated dialing systems/auto-dialers to make contact with as many people as possible.

In recent developments, this may soon change, as politicians on Capitol Hill appear poised to introduce widespread reform to the laws governing debt collection and cell phones.

In his latest deficit reduction plan, President Obama is calling for the law to change so that those who have defaulted on money owed to the federal government - student loans, taxes, government-sponsored mortgages, etc. - may be contacted via their cell phones.

More significantly, a bipartisan bill calling for an end to the ban against debt collection agencies using auto dialers to contact consumers via cell phones is currently making the rounds in congress.

Consumer advocates fear that if such measures are adopted, debt collection agencies - the industry that is the subject of the most complaints at the Federal Trade Commission (FTC) - would immediately begin harassing consumers.

"You give them any opportunity to call cell phones, they not only will do what is allowed but what is not allowed," said Lauren Sanders, a managing attorney with the National Consumer Law Center. "This is one of the most abusive industries in the country."

Supporters, however, argue that the legislation accounts for major changes in the cell phone industry (cheaper plans/rates) and the fact that many Americans now utilize cell phones (as opposed to landlines) as their primary form of communication. Furthermore, they argue that protections against telemarketers calling cell phones would remain in place.

How do you feel about this? Should debt collection agencies be permitted to contact you via your cell phone?

Stay tuned for further developments from our Phoenix bankruptcy blog ...

If you would like to learn more about how to eliminate debt and secure a fresh start via Chapter 7 bankruptcy or Chapter 13 bankruptcy, take the time to speak with an experienced legal or financial professional.

The following post is for informational purposes only and is not to be construed as legal advice.

Related Resources:

The Baltimore Sun "Debt collectors, other businesses want to call your cell phone" Sept. 26, 2011