This is a capitally bad piece of legislation from a state that seems to be specializing in crap legislation as of late:
Brewer signed House Bill 2664 into law today. The measure allows collection agencies to use final billing statements as a basis to show amounts owed and interest rates as they seek court judgments and wage garnishments.
The bill was favored by debt collectors, which buy delinquent accounts from banks and credit card companies for pennies on the dollar, but receive only minimal information from those sources. It can be difficult and expensive for the collection companies to get additional information on the defaulting consumers and business owners.
Debt collectors’ business model depends on them collecting money from the account holders whose information they buy. The new state law makes it easier on them if they can obtain final billing statements from the banks and credit card issuers.
Fantastic. It's not like credit card companies ever get billing statements wrong, or charge you random fees for random crap. This is a brilliant policy. Kudos, Arizona!
I once had a debt collector that was calling me incessantly claiming that I owed $700 in back parking tickets; tickets that were associated with the license plate for a car that I owned seven years prior. In California, you cannot register a new car if you have unpaid parking tickets. I knew it was BS, but this woman kept insisting that I had to pay them $700. I, of course, did not pay, and I periodically check my credit score to ensure that this woman's BS claim did not affect my credit score.
Debt collectors are shady and Jan Brewer is more than happy to give them license to be even more shady.
Moreover, credit card companies are shady, which is partly why I don't own any credit cards anymore. The other part? Don't worry about it.
[via Crooks and Liars]