Consumer Complaints Address Continuing Debt Collection Problems

According to a recent article in the Stamford Advocate, a rise in consumer debt over the last several years does not seem to be going away, and debtors continue to lodge complaints about debt collection practices. As the article points out, a study from the Urban Institute conducted in 2014 showed that 35% of adults in the United States currently have debt that they have not paid. While the average amount is not particularly high—around $5,200—the fact that so many Americans are dealing with debt collectors makes clear that we need to hold debt collection companies accountable and ensure that they abide by the Fair Debt Collection Practices Act (FDCPA).
Most Commonly Reported Complaints with Debt Collection
The Alliance for a Just Society recently released a report, according to the Stamford Advocate article, in which it reviewed about two years of complaints addressed to the Consumer Financial Protection Bureau (CFPB). Although certain privacy concerns prevented the report from including all data since 2014, it nonetheless gives a broader idea of the most commonly reported complaints with debt collection and the issues faced by numerous consumers.
As you might expect, and as we have discussed previously, a large number of complaints deal with “third-party debt collectors or debt buyers who have purchased uncollected debt for a few cents on the dollar.” In some cases, debt collection practices that violate the FDCPA are not intentional. Whenever debts are transferred—from the original lender to a third-party debt buyer, for instance—there is a possibility that the information on file will not be transferred properly, or that certain information will be lost. As a result of errors like these, consumers can get calls and other forms of communication from debt collectors who say that they owe more than they think they do, or that they owe a debt that they do not actually owe.
The most commonly reported complaint, according to the report, was from consumers who were being targeted for a debt that they did not believe they owed. About 42% of all complaints were within this category. In some instances, the consumers believed they had already paid the debt. In other cases, the consumers complained that they had never owed the debts in the first place. How do many of these alleged debts appear on the desks of collection companies? Sometimes debts are discharged through Chapter 7 bankruptcy, but the third-party debt buyer either does not have information about the discharge or attempts to collect the debt anyhow. And sometimes identity theft can result in a consumer’s name being linked to a debt she knows nothing about.
Communication Tactics are a Problem
After complaints about false debts, consumers lodged a number of complaints about the communication practices used by debt collection companies. The FDCPA makes clear the ways in which a third-party debt collector can and cannot contact consumers. However, nearly 20% of all consumer complaints on file with the CFPB concern communication tactics. What were some of the complaints?
  • Collectors calling repeatedly at all times of the day;
  • Collectors calling at debtors’ places of employment after being asked to stop; and
  • Collectors refusing to provide detailed information about the alleged debt owed.
If you have are being harassed by a debt collector or believe that you have not been treated fairly by a debt collection company, an experienced Oak Park consumer protection lawyer may be able to help. Contact the Emerson Law Firm today for more information.

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