2007 Saw More Complaints About Debt Collectors, FTC Says
The Federal Trade Commission receives more complaints about debt collectors than any other industry, and according to an FTC report released this week, complaints about debt collectors went up last year even though total complaints about all industries declined slightly.The FTC handled 341,080 complaints about all industries last year, the report said, down from 348,180 in 2006. In contrast, the number of complaints about debt collectors increased from 69,249 in 2006 to 70,951 in 2007.
The most common complaint about debt collectors was that they demanded payment for a debt the consumer does not owe, or that they demanded a larger payment than is permitted by law.
The federal Fair Debt Collection Practices Act, overseen by the FTC, does not allow debt collectors to add interest and other fees unless they were part of the original agreement the consumer made with the first creditor. Yet many debt collectors add fees and interest charges of their own, in violation of the law.
The second most common complaint was that the collector allegedly harassed the consumer in attempting to collect on a debt, and the third most common was that collectors threatened dire consequences if the debt is not paid.
Under the FDCPA, collectors may not call repeatedly or use abusive language. They must stop calling if the consumer demands it and may not threaten consequences that it has no legal right to cause. Collectors may not threaten legal action unless such action is planned.
Other common complaints include contacting consumers at work in spite of knowing it is not allowed by the employer, failing to send a consumer written notice of a debt, failing to verify disputed debts, and continuing to contact a consumer after receiving “cease communication” notice.
The FTC is investigating many of the companies about which they received complaints, the commission said.
For more information or to view the full report, visit www.FTC.gov
Story by Michelle Brunetti, PressofAtlanticCity.com
