Debt collection companies have been making a living off of your debts for years. When your creditor doesn’t have the time or resources necessary to pursue you to collect on a debt, they hire a third party company. Many of these companies are well known for their bullying and intimidating collection techniques, which scare consumers into paying more than they can afford or running from collectors they cannot afford to pay. In either case, debt collections has been a fairly easy business for many. However, a new law in Maryland seeks to change the way debt collectors do business.
Until now, consumers had few options for legally stopping debt collections outside of filing for bankruptcy. The highest court in Maryland just handed down a decision to bring an end to easy processing of debt collection orders and provide consumers with more protection when resolving debts.
The new law requires that debt collectors provide the court with proof of debt liability before a collection order can be issued. This puts the burden of proof on the debt collection agency’s shoulders to demonstrate that the debtor did, in fact, acquire the debt. The court will be looking for evidence in the the form of a copy of a signed bill carrying the debtor’s signature.