Debt Collection -this industry now springs up in India chasing you for money and making immense profits

In a glass tower on the outskirts of New Delhi, dozens of young Indians are on the telephone, calling America’s out of work, forgetful and debt-stricken and asking for cash.

Americans are used to receiving calls from India for insurance claims and credit card sales. But debt collection represents a growing business for outsourcing companies, especially as the American economy slows and its consumers struggle to pay for their purchases.

Armed with a sophisticated automated system that dials tens of thousands of Americans every hour, and puts confidential information like Social Security numbers, addresses and credit history at operators’ fingertips, this new breed of collectors is chasing down late car payments, overdue credit card debt and lapsed installment loans. Debt collectors in India often cost about one-quarter the price of their American counterparts, so more profit for the companies.

Companies like Encore buy bad loans from banks and credit card issuers for pennies on the dollar and pocket the cash they collect. The delinquent borrowers often owe at least a thousand dollars.
Encore — which also operates as Midland Capital Management — also files sheaves of lawsuits against customers who do not respond. Sometimes the debt is so old that the statute of limitations for filing a suit has passed, and it may already have vanished from a person’s credit report. If the debtor makes a new payment, though, the statute of limitations starts all over again.

Just over 4.5 percent of all bank credit card accounts were delinquent in the fourth quarter of 2007, according to the Federal Reserve, up from 3.5 percent two years before. Businesses in the United States put $141 billion in delinquent consumer debt up for collection in 2005, according to a PriceWaterhouseCoopers survey commissioned by an industry group, and debt collection agencies collected $51 billion that year. They kept nearly a quarter of that in profits.

However, the transfer of debt is illegal, and if you know this, you can eliminate the debt. In fact, once your loan, or credit card has been handed to a debt collection company, then you know you've won the fight to eliminate the debt.
This is just one of the invaluable economic and legal facts that bust the myths of the financial world that you will learn when you read How to Cancel Credit Card Debt.