Debt Collection Complaints Show a Steady Increase

Have you recently received harassing phone calls from debt collectors, or have you been contacted by debt collection companies that attempt to get you to pay debts you do not actually owe? For many Oak Park, Illinois residents, there are reasons to file complaints about debt collectors, and Illinoisans are not alone. According to a recent report from ACA News International, the rates of debt collection complaints have been rising steadily since August 2016. What kinds of complaints have consumers lodged about debt collectors? What should you do if you receive phone calls or other forms of contact from debt collectors that are illegal under the Fair Debt Collection Practices Act (FDCPA)?
Consumer Financial Protection Bureau Receives Increase Number of Complaints Concerning Unfair Debt Collection Practices
On November 29 of this year, the Consumer Financial Protection Bureau (CFPB) released a snapshot of its most recent log of consumer complaints regarding debt collection practices. Between August and October 2016, the agency received 8,240 complaints, which shows a rise of more than 1,200 complaints from that same time last year, when the CFPB received 7,006 complaints.
In total, as of November 1, the agency has handled about 1,035,200 complaints since its inception, and nearly 280,000 of those have involved an aspect of debt collection. Since the CFPB launched its “Consumer Complaint Database,” it has handled a monthly average of 6,895 complaints concerned deceptive, fraudulent, or otherwise illegal debt collection practices. The CFPB has also handled thousands of complaints concerning “other financial services.” A news release from the CFPB indicates that “consumer complaints about these types of financial services generally revolve around issues of fraud or problems with reliable customer service.” Indeed, 51% of those types of complaints dealt with fraud in some capacity or a scam.
Learning More About the Types of Complaints Handled by the CFPB
To get a better big-picture idea of the types of complaints handled by the CFPB and the types of complaints that have resulted in an increase this year from consumers, we should take a look at all of the complaints the agency has received recently. We have already mentioned some of the numbers and types of complaints received over the last several months, but it can help to see them in comparison and in context. According to its news release, the following three types of complaints have topped the list most recently:
  • Complaints about debt collection: In October 2016, the highest number of complaints received by the CFPB were related to debt-collection. In total, the CFPB received about 27,000 complaints this past October, and 7,749 were connected to debt-collection schemes. To put that figure another way, about 29% of complaints involved debt-collection practices.
  • Complaints about credit reporting: A total of 5,369 complaints received by the CFPB were related to credit reporting. This type of complaint accounted for about 20% of all complaints received by the agency.
  • Complaints about financial products: This category of complaints also includes mortgages. There were 4,357 complaints in this category, or about 16% of the total complaints received by the CFPB.
Contact an Oak Park Consumer Protection Lawyer
Do you have questions about filing a claim under the Fair Debt Collection Practices Act? An experienced Oak Park consumer protection lawyer can help. Contact the Emerson Law Firm today to discuss your case.
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