Consumers Feel Threatened By Debt Collectors, CFPB Says

When consumers who owe debt receive calls from debt collectors, do they tend to feel threatened by these contacts? According to a recent news release from the Consumer Financial Protection Bureau (CFPB), a report from the government agency determined that “over one-in-four consumers contacted by debt collectors felt threatened.” The report was based on a large-scale national survey—the first of its kind—to address consumers’ relationships with debt collectors and consumer feelings concerning the debt collection process. The report drew startling conclusions about how debt collectors treat consumers, and the findings are important for any consumer to consider, as well as for anyone concerned about fair debt collection practices.
CFPB Survey Highlights Problems in Debt Collection Practices
The CFPB survey helped to show that even debt collection practices that may not be in violation of the law still make consumers feel unprotected and, as the report noted, threatened. Yet the survey uncovered more information about consumers’ reactions to debt collection practices than simply how they respond psychologically to phone calls from collectors.
In addition to more than 25% of consumers in the survey feeling threatened by debt collectors, more than 40% surveyed indicated that “they were approached about a debt in collection” and “requested that a creditor or collector stop contacting them.” How many of those debt collectors complied? In the cases of those consumers surveyed, “three-in-four report that debt collectors did not honor their request to cease contact.” To put that number another way, among the consumers surveyed who asked a debt collector to stop making contact, 75% of those consumers continued to receive unwanted contact from debt collection companies.
What else did consumers report in the study? More than half of those surveyed (53%) indicated that they had been contacted by debt collectors for a debt they did not owe, for the wrong amount of the debt, or for a debt owed by another member of the person’s family. In addition, more than one-third of consumers surveyed made clear that debt collectors had contacted them at inconvenient times, including between 9:00 p.m. and 8:00 a.m.  
CFPB Looks Ahead Toward Additional Consumer Protection Goals
Moreover, the survey helped the CFPB to think about other potential harms in the debt collection universe, including the “potential risks in the online debt marketplace, where consumer debts and personal information are for sale for fractions of pennies on the dollar.” In releasing the report, Rich Cordray, the CFPB Director, explained the implications of the agency’s study:
“The Bureau today casts light on troubling problems in the debt collection industry . . . .  More than one-in-four consumers report feeling threatened by a debt collector, and a majority of those contacted about debt say the calls persist even after the requests stop. The Bureau is working to clean up abuses in this industry, and to see that all consumers are treated with fairness, decency, and respect.”
Contact a Consumer Protection Attorney in Oak Park
If you have questions about your rights as a consumer under the Fair Debt Collection Practices Act (FDCPA), it is extremely important to speak with an experienced Oak Park consumer protection lawyer. An advocate at our firm can discuss your options with you. Contact the Emerson Law Firm today.
See Related Blog Posts:
Allegations of Deceptive Lending Practices at Student Loan Company

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