Telecommunications Debt Collection Issues


If you think about an unscrupulous debt collector or debt collection company, do certain types of debt come to mind more than others? For many Oak Park residents, the image of aggressive debt collectors whose actions may rise to the level of harassment might be one involving unpaid credit card debt or student loan debt. Yet there are many different types of debt that consumers take on, and some debt collectors specializing in collecting particular kinds of debt. According to a recent report from the Consumer Financial Protection Bureau (CFPB), telecommunications debt collection is an area that has resulted in consumer complaints in recent years, and the CFPB has tracked data concerning this particular kind of debt. Telecommunications debt collection refers to telecom collections, or telecommunications providers.
Debt collectors are required to abide by the laws set forth in the Fair Debt Collection Practices Act (FDCPA). What do you need to know about telecommunications debt and unfair debt collection practices?
Changes in Telecommunications and Debt Collection
Why is the CFPB studying telecommunications debt and its effects on consumers? As the CFPB report explains, in recent years the nature of telecommunications technology has shifted, and “this evolution includes mergers between wireless, cable, and internet service providers.” At the same time, there have been “legal settlements over cell-phone billing practices,” as well as “continued growth in mobile wireless and fixed internet adoption, including consumers shifting from traditional cable and phone services to internet-based alternatives.”
What does all of this mean for consumer debt and collections? In short, the companies that are attempting to collect on telecom debts have shifted based on changes in consumer behavior, as well as changes to companies themselves. For instance, a company that solely provided telecommunications services might have merged with another type of tech company, resulting in some telecommunications debt collections coming from a different type of company altogether.
Understanding Telecommunications Debt
One of the notable things about telecommunications debt collections is that they have declined steadily from early 2014 through 2018. The likely reasons are those listed above—mergers and changes in consumer behavior. Another notable feature of this debt is that it is not a significant amount of consumer debt, averaging under $500 for a collection. The following are some of the key findings from the CFPB:
  • More than 20% of consumer credit reports contain a telecommunications debt;
  • Median telecommunications collection balance is $408;
  • Only 17% of telecommunications debts exceed $1,000;
  • Telecommunications companies rarely attempt to collect their own debts, turning instead to debt buyers or debt collection companies; and
  • Most consumers with a telecommunications debt on their credit report have low credit scores.
Even though telecommunications debts are generally for low amounts, this does not mean that telecommunications debt collectors do not need to adhere to the FDCPA. As with other types of debts, consumer reports harassment and unfair debt collection practices for telecom debts.
Contact an Oak Park Consumer Protection Lawyer
If you have been harassed or treated unfairly by a debt collection company attempting to collect a telecommunications debt, you should speak with an Oak Park consumer protection attorney about your case. Contact the Emerson Law Firm today for more information.
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