A class action is needed to take on debt collectors who buy debts from financial institutions for aprox 5 cents in the dollar and then harass the lender into paying the full amount of the loan plus accrued interest.
I would suggest that the original debt agreement is between the borrower and the financial institution.
No such agreement exists between the borrower and the collection agency.
The financial institution has written off the debt as a tax benefit and sold the full value of the debt.
Legally the debt collection agency has no legal right to add interest and chase the debt unless they are acting as Agents for the financial institution and intend to pay the proceeds of their efforts back to the financial institution direct. Collection Agents are of course allowed to deduct their charges.
If this becomes the case the financial institution then claims the difference (not the whole amount) as a tax deduction.
This is a arranged con job that has emerged in the last 20 or so years between the institutions and collection agencies.
Consumers need to be protected as financial institutions are making huge profits arising from bad debts.