When you’ve been abused by debt collectors, the last thing you want to do is deal with a government bureaucracy. Nonetheless, it’s important to report debt collection agencies that violate the Fair Debt Collection Practices Act (FDCPA) to the Federal Trade Commission (FTC). That’s because the FTC is responsible for enforcing the fair debt laws that protect consumers.
FTC’s Annual Report: Violations of the FDCPA
According to the Fair Debt Collection Practices Act, the Federal Trade Commission must submit an annual report to Congress that provides an overview of consumer complaints related to debt collection, as well as what the FTC did to make sure debt collectors followed the law, its educational efforts, and its research. The FTC just released its 2010 report, which covers 2009.
The 2010 report, which covered 2009, noted that the number of consumer complaints about third-party debt collectors increased substantially over the previous year. The FTC received 88,190 complaints in 2009, whereas it received 78,925 complaints in 2008. The same was true for complaints about in-house collectors, in that there were 32,076 complaints in 2009 and 26,6652 complaints in 2008. The agency acknowledged that the number of complaints don’t reflect the number of violations of the Fair Debt Collection Practices Act, since many consumers never file a complaint with the FTC. However, the FTC still receives more complaints about debt collection than it does for any other industry.
When it comes to the types of violations about which consumers complained, it seems that multiple violations of the FDCPA often occur. The FTC reports that 46.5% of complaints involved harassment by repeated or continuous calls. Other types of harassment included using obscene or abusive language (16.2%), calling before 8:00 a.m. or after 9:00 p.m. (11%), and threats of violence (2.9%).
Another category of complaints involved debt collectors demanding a larger payment than the FDCPA permits. The FTC reported that 31.1% of complaints revolved around a debt collector trying to collect a debt that was not owed, and 10.9% said that collectors tried to get consumers to pay interest or fees that were not owed.
Other complaints involved threatening legal action (20.9%), threatening arrest (13%), calling consumers at work (13.6%), telling a consumer’s friends or colleagues about a debt (12.2%), failing to send required legal notifications (25.7%), failing to verify disputed debts (11.5%), and continuing to contact the consumer after receiving a “cease and desist” letter (8.4%).
FTC Enforcement Actions Against Debt Collection Agencies
Typically, the Federal Trade Commission enforces fair debt practices through lawsuits. The FTC either files suit against unscrupulous debt collectors itself, or it asks the Justice Department to do so on its behalf. According to the 2010 FTC report to Congress, the agency settled lawsuits against a number of debt collection agencies and Internet payday lenders.
Why You Should File a Complaint
The Federal Trade Commission does track consumer complaints and report them to Congress. Moreover, they use this tracking information to investigate unscrupulous debt collectors and even to take them to court. So, if you’ve been the victim of a shady debt collector, you should complete the FTC’s online form or give them a call and make your voice heard.
How to File a Complaint
It’s easy to file a debt collector complaint with the Federal Trade Commission. You can fill out an online form on the FTC website, or call the FTC at 1-877-382-4357.
