A collection agency just called wanted to collect an IRS debt, is that legal?
Well, yes. Is it realistic? Well, no. Several years ago IRS implemented this program.
The IRS has sent a portion of their inventory to outside debt collectors.
The debt collectors have to follow the laws set out under FDCPA, meaning they cannot lie to you, and they have to identify themselves. The debt collectors are paid up to 25% of what is collected. There is a report that the private debt collector brought in 6 million, but spent 20 million. Cost effective, no.
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