When the Fair Debt Collection Practices Act was first passed in 1977, a distinction was made between those who are collecting on debts owed to themselves and those collecting on behalf of other entities. The idea was that creditors who collect on their own behalf are more likely to behave. They are far less likely to use deceptive or abusive tactics, the argument goes, because the debtor is their own customer.
When a person has a significant amount of debt, they often find themselves in a heightened state of vulnerability. In an effort to respect every individual's circumstances and to prevent fraud, the Internal Revenue Service has tried to remain transparent in their processes.