So how much more difficult will check collections be in the future? With POS check conversion, fraud will grow significantly, due to the ease in which crooks can create perfect MICR checks with legitimate account numbers (meaning yours, not theirs). The "consumer as keeper" model of check conversion at the point-of-sale will return the evidence of a crime to the criminal (eliminating law enforcement as any deterrent at all). And, if the White House has their way, collections letters and telephone calls will land the businesses sending those letters and making those calls in court more often than ever before.
To accomplish their stated goal of educating consumers, and preventing fraud and abuse (this translates into legislating the right to life, liberty and the pursuit of happiness, with other people's money), the Administration is seeking to limit the amount of information made available to credit and collection agencies. And, to provide sanctions against those who provide information to these organizations.
The Administration plans to implement their objectives, as they relate to credit and collection industry, in three ways:
Industry pundits believe if this direction is successful, it may kill off the efforts of the nation's collection industry to eliminate ambiguous language in the Fair Debit Collection Practices Act. Gee, you would think a bunch of attorneys were writing the legal profession's Full Employment Act.
