We are sure you are fully aware of the current ongoing COVID-19 issues at the moment. First and foremost, we hope that you and your families are keeping safe during this uncertain and anxious time.

You may be shocked to hear about the following news that has arisen. Even during the global COVID-19 pandemic, US debt collectors are still out in full force.

Legal groups across the united states are asking to put a stop to debt collection. Federal and state governments are yet to respond. Due to the coronavirus, people that are already struggling with debt issues are finding it hard to feed themselves and their families at this difficult time. 

People across the United States and the world have been told to distance themselves socially. This, as a result, has had a major effect on the economy and in turn employability. With many people losing their income, they are struggling to pay off outstanding debts. This, coupled with the fact that debt collectors are still in service, is causing a huge uproar and panic throughout the united states.

As the United States does not have a national health system, many people are falling victim to major debt crises in order to pay for their medical bills. This, of course, is causing a major moral uproar throughout the country. Obviously, during this pandemic, there is a huge rise in people that are unwell.

Although several legal groups across the United States are urging for a halt in private debt collection and public debt collection, which includes wage garnishment (therefore stopping any federal stimulus checks to Americans from being garnished by debt collectors), debt collection is still ongoing throughout the states – and it is rising.

Those on low incomes are worst affected. The new normal that has surfaced due to the global pandemic is having huge negative effects on peoples social, financial and work lives. For those who have little or no savings and no longer have an income, debt collection is becoming a major anxiety not only in American but around the world.

To cover consumer debts, many citizens in the United States have wages garnished from their annual payslips. Studies show that those that are of a low income are hugely affected by this. Food banks throughout the country are overrun with people coming to get their essential items.

Let us know your thoughts on this. Or if you are currently a citizen in America experiencing problems with this please let us know.

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more