By Valerie S. Johnson
Every year, the Federal Trade Commission issues a report to Congress on what it has done in relation to the Fair Debt Collection Practices Act (FDCPA). This legislation prohibits third party collectors from being deceptive, unfair and abusive. It’s important to note that the FDCPA generally does not apply to creditors collecting their own debts.
If you have a complaint about a debt collector, you should notify the FTC by using the online complaint form at the FTC's website, by calling 1-877-FTC-HELP, or by mailing your complaint to the FTC.
The FTC reported that it received over 69,000 complaints in 2006. This is a relatively small number because many consumers who may have a legitimate complaint are unaware they can and should report it to the FTC.
The most common complaint reported in 2006 was that debt collectors demanded a larger payment than is allowed by law. Consumers making these complaints claimed, for example, that they did not owe the debt at all, that the debt collector was trying to collect a larger amount than was owed, or that the debt had been discharged in bankruptcy.
Consumers who reported illegal behavior also claimed that the collectors harassed them by calling repeatedly, using profane or abusive language, threatening dire consequences if the debtors did not pay, and engaging in a host of other prohibited conduct.
What can the FTC do about a rogue debt collector? They can sue the collection agency or ask the Department of Justice to do so. The FTC is engaged in “non-public investigations” of collectors for possible violations. The report specifies that in the past year, the total of its enforcement efforts was to sue one collection agency and to reach settlement agreements with two others.
The FTC’s report also details its vigorous efforts to education consumers about their rights under the FDCPA. The Fair Debt Collection brochure is available
here.
The FTC's 2007 annual report on the FDCPA is available
here.
04-01-2007, 09:10 PM
FTC’s Annual Report on Debt Collection
