Most of those people who cannot afford to pay their monthly minimum credit card payment become potential victims of the consumer collection industry. However, a small, but growing number of consumers have found consumer protection laws to protect themselves against collectors and a way to eliminate debt.

Depending on how he or she spends it, time is the collector’s friend or enemy. Ideally collectors would like to spend their time with consumers who are easy to collect from. Everyone knows an overdue credit card will bring a call or a letter from some debt collector. What they do not know is with a proper consumer response to that communication, the collector will move on to a more likely target.

Most people do not know that their is a very low chance that these agencies can do anything beyond try to call you and convince you that is imperative that you respond to their attempts to collect your money. You may find that if you send the proper letters asking them to verify debts theirs a good chance they do not have the information to do that because a lot of debts have been passed around to many different companies.

Over the last 30 years the credit card industry has grown exponentially and the consumer debt collection business has as well.

1. The Federal Reserve and Business Week report $133.7 billion of consumer debt in 1970 increased to $2.5 trillion of consumer debt in November 2007.
2. According to ACA International, a consumer debt collection trade group, each year debt collectors return more than $40 billion to the U.S. economy.
3. According to data from the U.S. Census Bureau, there were 159 million credit cardholders in the United States in 2000, 173 million in 2006.
4. According to the American Banking Associate, 4.75 percent of bank cards were delinquent in the first quarter of 2009.

The point is, there are millions of delinquent accounts to go around to ambitious debt collectors and collection attorneys.

The Federal Reserve requires credit card companies to hold reserves for bad debts. The companies profit from these debts after they are written off by selling them to junk debt buyers for no more than one penny on a dime, or 10 percent of their value. With that kind of discount, junk debt buyers and their collection agencies and collection attorneys can be quite profitable by only collecting on 30 or 40 percent of the purchased accounts.

Debt collectors can make more money by pursuing delinquent account holders who put up no resistance. Proper resistance to debt collection attempts usually causes debt collectors to look for less resistant targets. Effective resistance to credit card debt collectors starts with the Fair Debt Collection Practices Act (FDCPA).