Shutting Down Deceptive Debt Collectors

Although we have entered into a new year with promises for fairer debt collection practices, dishonest and deceptive debt collectors continue to target consumers. According to a recent news release from the Federal Trade Commission (FTC), the federal government recently announced “four cases against debt collectors who did pretty much everything wrong.” In other words, the FTC is starting the year off by immediately targeting debt collectors who are not abiding by the Fair Debt Collection Practices Act (FDCPA).
Recent FTC Focus on Dishonest Debt Collection
As the news release explains, the FTC has been taking relatively large steps over the last year to eradicate deceptive debt collection practices. It announced 115 new cases against collection agencies back in November, working with “more than 70 law enforcement partners” to close down these dishonest debt collection operations. In 2015, the FTC filed cases against 52 different defendants, which was the largest number of actions in the FTC’s history.
Why is the FTC so focused on shutting down bad debt collection companies that are not abiding by the law? As the November press release note, debt collection is an extremely large industry in our country. Given that almost 30 million people in America have at least one account that is currently past due and in collection, the debt collection business is thriving. It makes as much as one billion each year. Now, many debt collection practices are legal, and there are numerous companies that are following the rules laid out by the FDCPA. For those honest debt collection companies, the debts they are collecting are valid, too.
However, despite the fact that a substantial amount of debt collection is fair and legal, there are many debt collection companies that are not operating legally. Many of them are using deceptive practices in attempts to collect debts owed, while others are trying to collect debts that simply are not owed at all. It is precisely these kinds of debt collection practices that the FTC is targeting. While the agency had its biggest year yet in 2015, the FTC’s immediate focus in early January on continuing its operations suggests that this year could see many more unfair debt collection companies closed down.
Trends in Deceptive Debt Collection
Of the 2016 cases filed, the FTC press release emphasizes that each of the companies actually have several things in common:
  • Debt collectors pretending to be someone else such as “a court official, law enforcement, process servers.”
  • Debt collectors threatening consumers with arrest, vehicle impoundment, wage garnishment, and lawsuits.
  • Debt collectors failing to give consumers the proper information for disputing the debt.
When a debt collector violates the law, consumers deserve to be compensated. At the Emerson Law Firm, we are committed to helping consumers in Oak Park who have been unfairly targeted by deceptive debt collectors and debt collection scams. If you think you may have been the victim of an FDCPA violation, you may be able to file a claim. Do not hesitate to reach out to an experienced Oak Park consumer protection lawyer to learn more about how we can assist you. Contact us today.
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