If passed, President Obama's deficit reduction program might alter the regulations for government collectors. They might be permitted to call the cellular phones of borrowers with delinquent federally-backed loans. These debts include back taxes, most home loans and government school loans. Collectors are only permitted to call home telephones currently. How often have you expected additional information on types of payday loans and resorted to a web site search on types of payday loans?" Look no further, all of the facts you'll need is at MatchFinancial.

All about cellular phones

Since there is such a reliance on cellular phones now, it is necessary to make the change, according to the administration. The provision reads:

"The Administration ... proposes ... facilitating contact of delinquent debtors who are most readily reached on their cell phones. This provision is expected to provide substantial increases in collections particularly as an increasing share of households no longer have landlines and rely instead on cell phones."

Mostly for student loan default

Consumer law expert Margot Saunders said, "the main target will probably be student-loan debtors. Right now, the country is facing tremendous unpaid debt, not because we have a lot of deadbeats, but because a lot of people are out of work and can't repay the debt."

There are about $50 billion in outstanding school loans in the nation, as reported by finaid.org’s Mark Kantrowitz. "The fear is collection agencies will use this to harass students," Kantrowitz said. Next to identity theft, debt collection garners the largest number of customer complaints received by the Government Trade Commission.

Not the right numbers

One of the top grievances is that debt collectors are calling the wrong number, according to customer advocate Tena Friery. "Cellphone numbers tend to change more than landline numbers, as people move from place to place or plan to plan," she said. It can be especially annoying, and potentially costly, to get repeated calls for a debt owed by somebody else.

Paying more for cell phones

A lot of people are worried about all of the extra calls. They think their mobile phone bills will increase because of it. CPA Howard Dvorkin explained that a lot of unemployed people and students rely solely on cellular phones. Pay-as-you-go plans are used by them.

Should not be a right only for administration

Collectors in the private sector are also speaking up, saying if the administration is able to call cellular phones, they should be permitted to. Mark Schiffman works for an association of third-party collectors as the director. He says that it is very hard to collect debt with restrictions on mobile phones.

Could be moot

All of this speculation might be moot, however. There is not going to be a lot of support from Congressional Republicans. That means it probably will not pass, even though Moody’s Investors Service said that the deficit reduction plan might help the credit score in the nation. The Republicans and Democrats in office are no longer cooperating with one another. This is one of the reasons that there was a downgrade in August in the nation’s credit score, according to Standard & Poor’s.

Consumers would do things to get the calls ended, even if it someone passed. According to the Fair Debt Collection Practices Act, debt collectors are not legally able to continue calling debtors if requested not to in writing.

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