Debt collection recollection

February 9, 2015

As the saying goes, two heads are better than one. That’s so true when it comes to the thorny issues surrounding debt collection practices. Unlawful debt collection practices are a long-standing source of consumer complaints.  So, it only makes sense to have two cops on the beat; the FTC and the Consumer Financial Protection Bureau work together to enforce the Fair Debt Collection Practices Act and keep debt collection practices lawful. The Dodd-Frank Act directs the CFPB to take the lead on an annual report to Congress about the federal government’s debt collection initiatives. To help with the report, the FTC puts together a comprehensive description of the Commission’s law enforcement, consumer education, and policy activities related to debt collection.

The FTC targeted debt collection that’s deceptive, unfair, or abusive as one of its highest priorities in 2014– and made great strides. Commission lawyers filed 10 new cases against 56 defendants. Of the cases the Commission resolved last year, it netted nearly $140 million in judgments ($16.5 million of which has been collected). The FTC’s efforts resulted in 47 companies and individuals being banned from ever working in debt collection again.

Efforts to keep debt collection practices within the law are not limited to law enforcement. In 2014 alone, the FTC’s sites logged more than 1.3 million page views of our publications related to debt collection. In October, the Commission and CFPB co-hosted a roundtable in California to look into how debt collection issues may affect Latino consumers, especially those who have limited proficiency in English. If your business collects debts, take a minute to look over our guidance to keep your practices in line with the law.

 

Comments

Law s at the State level is where the abuse is carried out, Probate and small claims , Judges are basically free agents and generally favor any business that file claims for colection regardless of federal laws that are violated in the process, What is going to change that?

I had a security system with ADT Security Company. On June 26, 2014 I found out that I know longer had a job with CPS. I Informed the people over at ADT that I know longer had a job but would like to workout some kind of payment plan until I could get back on my feet. Well, my account was cancelled and sent to a collection agency without notice.So, now I get calls with some hanging up on me.

I HAVE SOME ONE CALLING ME 2X ADAY. THIS IS THE NUMBER1-85-875-4065,SAYS I OWE MONEY AND MY BILL SAY DO NOT PAY THIS IS A SYATEMENT. CAN'T GET THEM TO QUIT CALLING. CALLS STARTED 1 WK AFTER HOME FROM HOSPITL AND WAS ON LIFE SUPPORT, HE DIDNT CARE AND I WAS FRAIL AND ON AFEEDING TUBE 4MONTHS. STILL CALLING NOW.

Credit reports never go away because collections always sells to another agency. Help how do I stop this. Contacted bureaus but they did nothing.

I've been following the collection laws. I've noticed some trends happening, and I hope that the FTC and related agencies make a ruling on it. Calls to consumers with no messages being left on either voicemail services or answering machines. These calls are coming from calling systems and when they do not detect what is believed to be an actual person answering the phone they hand up. This ends up with consumers receiving multiple missed calls and no messages. I wonder what they are marking the consumer's account with on this?
Next is Collection agencies are "pulling/posting" caller ID numbers that are similar to the consumer's number. Meaning, they are requesting from a phone service provider a list of numbers to purchase in order to have a different number display on a consumer's caller ID that would/could look similar to a familiar number to the consumer. Borderline deceptive or is this very deceptive? I would say it's deceptive due to the fact unless someone has reported the number, if a consumer looks up the number it does not state what company it belongs to. Consumers use Google, bing, Yayoo, etc, only to post a report of they don't know what these numbers are from. and due to high ID theft, they do not answer their phones. Many of the numbers are being reported as scam numbers.
Both are interesting and do hope some of the rules get further explanation so that this type of practice of collection gets addressed.

Add new comment

Comment Policy

Privacy Act Statement

It is your choice whether to submit a comment. If you do, you must create a user name, or we will not post your comment. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Comments and user names are part of the Federal Trade Commission’s (FTC) public records system (PDF), and user names also are part of the FTC’s computer user records system (PDF). We may routinely use these records as described in the FTC’s Privacy Act system notices. For more information on how the FTC handles information that we collect, please read our privacy policy.