Press Releases and Media Advisories
Springboard Advises Consumers to Protect Yourself From Private Debt Collectors
January 25, 2005, 1:08 pm
Sadly, the Internal Revenue Service has begun the practice of employing private, 3rd-party debt collectors to go after unpaid tax debts. It is therefore more important than ever for consumers to be educated about their rights and the limits to what 3rd party collectors may do.
Since President Bush signed into law the American Jobs Creation Act of 2004, many have criticized the potentially dangerous contract between the IRS and private collection agencies. Under this new law, the IRS is now able to outsource to private collectors and enable them to collect consumer’s tax debt. Springboard Non-Profit Consumer Credit Management encourages taxpayers to be aware of what private collectors may and may not do in order to protect yourself.
Although IRS outsourcing will not happen overnight, many are afraid that this initiative will create its own set of problems. The trouble is that private debt collectors will be receiving a 25 percent profit off of what they are able to collect, and who knows what types of scandals may arise from this. Private debt collectors may be willing to risk the rights and privacy of consumers in order to get their end of the job done.
The IRS claims that a taxpayer’s privacy will be protected throughout this process, but Springboard advises consumers to watch out. This course of action is not a guaranteed win-win situation. Consumers must be aware that private debt collectors only need to know your amount that is due, your name, address, and phone number. They are not entitled to any other personal information and do not need to know your tax return or tax history.
About Springboard Nonprofit Consumer Credit Management
Springboard is a nonprofit credit education and financial counseling organization founded in 1974. The agency offers personal financial education and assistance with money, credit and debt management through confidential counseling. Springboard is accredited by the Council on Accreditation, signifying high standards for agency governance, fiscal integrity, counselor certification and service delivery policies. The agency provides pre-bankruptcy counseling and debtor education as mandated by the bankruptcy reform law. Springboard is a HUD approved housing counseling agency and a member of the National Foundation for Credit Counseling, a national organization of nonprofit credit counseling agencies. The agency has several locations in California and offers face-to-face and nationwide phone counseling services. For more information on Springboard, call 1-800 WISE PLAN (1-800-947-3752) ext. 7750 or visit their web site at www.credit.org.
