News & Resources

Watchful eyes land on debt collectors after complaints

Jan 05, 2013 Philip Burgess

After the Federal Trade Commission received an outstanding number of complaints about debt collectors last year, the agency will be making some changes in 2013.

Many of those who complained about debt collection described the interaction as harassment, with some debt collectors calling a house upwards of 20 times a day, according to CBS.

“Some of our number one sources of complaints for consumers are for harassment and abuse, calling too often, using profanity, making violent or abusive threats," Chris Koegel, FTC attorney, told the news source.

Some calls are even suspected to be from fake debt collector lawyers, who either create pseudonyms or take the name of real attorneys. There are already laws put in place to prevent scams. For instance, according to the Fair Debt Practices Act, any real debt collector must send a letter to the consumer with the amount of debt and the name of the creditor to which the money is owed.

Starting January 2, the Consumer Financial Protection Bureau and the FTC will begin working together to track large collection agencies, making sure they are using proper methods to pursue debts.