Debt Collection Complaints Top 2010 FTC Complaint List
The FTC has released its 2011 Fair Debt Collection Report and in 2011 the FTC received more complaints against debt collectors than any other industry. Further, the number of complaints received by the FTC concerning third-party debt collectors and creditors increased from the previous year. The FTC is required to report annually on their enforcement efforts related to the FDCPA.
The report states the number of complaints related to third-party debt collectors and in-house creditors totaled 140,036 complaints and accounted for 27 percent of all complaints the FTC received. This represents an increase in total number of complaints compared to 2009, when the FTC received 119,609 debt collection complaints, accounting for 22.8 percent of all complaints to the FTC.
The FTC received 108,997 complaints about third-party debt collectors in 2011, which represents 21 percent of all complaints received from consumers by the FTC. In 2009, the FTC received 88,326 complaints referencing third-party collectors which was 16.8 percent of the complaints levied by consumers in that year.
In addition to evaluating the total number of complaints, the FTC also evaluates complaints filed regarding specific types of debt collection practices. The types of collection practices which were most frequently complained about by consumers in 2010 were:
- Debt collectors harassing consumers or others – 49.7%
- Demanding a larger payment than permitted by law – 30.4%
- Failing to send required notices – 29.8%
- Collectors threatening the consumer – 25.3%
- Agencies failing to identify themselves as a debt collector – 22.8%
- Communicating with third parties about the consumers’ debt – 21.8%
- Calling the consumer’s place of employment despite warnings – 15.6%
- Failing to verify debts that were in dispute – 10.5%
- Continuing to contact the consumer after receiving a cease and desist letter – 6.7%
It is no surprise to me that debt collector complaints top the FTC’s list again this year. The increase in bad debt, problems with the economy and general aggressive nature of collection agencies made this inevitable. Hopefully, the FTC continue to reign in the bad actors in the debt collection industry.
If you would like to make a complaint against a debt collector, to the FTC, you can do so at the FTC Complaint Page HERE.
