Learn the facts regarding consumer debt collection complaints so you'll be prepared if a debt collection agency uses illegal collection measures. Know your consumer rights under the Fair Debt Collection Practices Act (FDCPA) to recognize when debt collectors violate them and to understand your options under those circumstances.
The Fair Debt Collection Practices Act The FDCPA protects your rights from third-party debt collectors, but usually doesn't apply to creditors' in-house debt collectors. Credit card companies frequently have their own debt collection departments.
The Federal Trade Commission (FTC) does investigate and prosecute some complaints. The FTC received 108,997 FDCPA complaints against third-party collectors in 2010 and 31,952 against in-house debt collectors. This is a relatively low number in comparison to the millions of consumers contacted by debt collectors each year (FTC, 2011).
Some consumers may file complaints when their rights haven't been violated, or may not file complaints when their rights are violated (possibly because they don't understand their rights).
Most and Least Common Complaints In 2010, more than 50,000 consumers complained that they received repeated calls to the extent of harassment from debt collectors, accounting for 49.7 percent of FDCPA complaints and making this the most common complaint. Approximately 33,000 complaints concerned debt collectors misrepresenting the debt amount, status or type of debt. The third most common complaint was that debt collectors failed to give written notice of the debt as required by law, with 32,477 complaints (FTC, 2011).
These three complaints were also the most frequent the year before, in the same order. The least common complaints in 2010 were that the debt collection agency threatened violence (4,182 complaints), called after receiving a cease and desist notice (7,343) or collected unauthorized fees, interest or expenses (10,614) (FTC, 2011).
Types of Complaints Other common complaints in 2010 involved debt collection agencies: • Calling at inconvenient times • Calling debtors at their place of work when notified not to do so • Calling third parties repeatedly • Dishonestly threatening consumers with arrest or property seizure • Failing to identify themselves as debt collectors • Failing to verify the debt after receiving a consumer's written request • Informing a third party about a consumer's debt • Threatening illegal actions (or actions they don't intend to follow up on) • Using inappropriate language (FTC, 2011).
Learn about the enforcement of debt collection rules to determine your options and the truth of your debt collector's claims.