Blumenthal: IRS could use private debt collectors against you

HARTFORD - U.S. Sen. Richard Blumenthal, D-Conn, is warning that a provision “hidden” within the recent federal transportation funding bill would unleash private debt collectors on delinquent taxpayers.

“With widespread allegations of harassment and abuse, the private debt collection industry is riddled with bad actors,” Blumenthal said.

“Congress should be doing more to protect taxpayers and students from this unscrupulous industry, not unleashing these firms on millions of struggling Americans,” the senator said. “While I strongly support investment in our nation’s transportation infrastructure, subjecting families to ceaseless and aggressive collection tactics is simply not the way to do it.”

The long-term surface transportation bill, known as the DRIVE Act, currently calls for $2.4 billion to be “saved” over the next ten years by requiring the IRS to enlist private debt collectors.

Blumenthal said the private debt collection industry is flawed, noting the Federal Trade Commission receives more complaints about the industry than any other, over 200,000 in 2013 alone.