More Collections Agencies Assign Debt To Wrong Person

Many Americans have fallen on hard times as a result of high unemployment and a weak economy, making it difficult for them to pay down their mortgages and maintain timely student loan, credit card and medical payments. As more individuals default on their obligations, debt collections agencies are becoming more assertive in their practices.

But a recent article in the Washington Post reveals that many collections agencies are erroneously assigning debt to the wrong credit file, leaving some to resolve the costly issue of repairing their credit report on their own. For example, one man, Michael L. Hughes, suffered repeated harassment and collection attempts for a $12,000 debt that actually belonged to a Michael B. Hughes, the newspaper reports.

As a result, the Federal Trade Commission has launched an investigation into the habits of some agencies that may easily lead to mistakes like the one Mr. Hughes suffered.

Even when seeking debt relief through credit counseling agencies or other similar organizations, borrowers should make sure they check their credit reports to examine their file for accuracy and make sure that the amount begin reported truly belongs to them.