Abstract
This paper explores an issue that almost every person in America has at one time come face to face with, the consumer lending industry. Most Americans currently use credit on a regular basis with no apparent problems. However, there is a large problem in America that is not being talked about and the U.S. Government is partly to blame. This paper reports on the results of research that was compiled from five credible sources of both online and off line content. J. Black of Business Week Online (2002) suggests that collection agency laws are not being enforced. Other research materials incorporated into this paper define the problem of collection agency adherence to laws differently. Although, all of the research influence combined into this paper is directed toward learning more about the consumer credit industry while offering one resolution to help solve the issue.
Destruction of the consumer’s credit
Over the last few decades the consumer lending industry has spiraled out of control. Millions of people have now become a victim of identity theft or have discovered fraudulent or misrepresented collection accounts on their credit report (Trudeau, 2008). The United States federal government desperately needs to implement strict regulation on all aspects of the credit industry in an effort to help solve this problem.
It does not matter whether you have good credit, bad credit, damaged credit or repaired credit; it is a big part of the average American’s life. In Trudeau’s (2008) best selling summary article reviewing credit card debt, it was found that most Americans have at least one credit card, are making payments on a car and many carry a mortgage on their home too. These are just three of the many large credit commitments so many people currently have today.
Re-building of consumer credit
Therefore, if one becomes a victim of identity theft it can be virtually impossible to prove it was a thief who created the debt. However, there...