If you’re in the debt collection business, it’s up to you to comply with the Fair Debt Collection Practices Act. If not, you might find yourself looking for another line of work.
The law is clear: You can’t use abusive, deceptive, or unfair practices. Debt collectors who cross that line will end up in trouble with the FTC. Some are fined, and ordered to comply with the law going forward. They are monitored by the FTC to make sure they do. The behavior of other debt collectors gone bad is so egregious that the FTC asks the courts to permanently ban them from participating in the debt collection business. Check out who’s on the FTC’s list of banned debt collectors. It includes links to press releases and legal complaints about the lawsuits that resulted in the bans. Legitimate companies looking to hire a debt collector or sell a debt won’t do business with anyone on this list.
As the list highlights, the FTC has been cracking down on illegal debt collection practices. In 2014, alone, the FTC:
- filed 10 new cases against 56 new defendants;
- resolved nine cases and secured nearly $140 million in judgments; and
- banned 47 companies and individuals from the debt collection business.
Since January 1, 2010, the FTC has sued over 180 companies and individuals who broke the law, banning 63 from the industry, and securing more than $220 million in judgments.
Want to make sure your company is complying with the law? Visit our Business Center to learn more.