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Debt Collectors: Rising Complaints For Abusive Collection Tactics
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Debt Collectors: Rising Complaints For Abusive Collection Tactics

According to the Federal Trade Commission, gathered by the Consumer Financial Protection Bureau, debt collectors have the highest number of consumer complaints. Both the Consumer Financial Protection Bureau and the Federal Trade Commission gathered all data and found that debt collectors routinely violate the FDCPA for their aggressive and unsavory behavior when collecting debts.

Now the question becomes, why are they rude when they collect credit card debt? Why do they cross the line routinely just to collect money from debtors? Below are some of the possible reasons why:

Commissions: Most debt collectors earn money each time they successfully collect the credit card debt. This is their prime motivation, if they cannot collect, they won’t get paid! This makes you wonder just how much they are getting the way they aggressively seek out debtors. From the looks of it, a lot of money is at stake.

Shady Employees: Did you know that some collection agencies actually hire convicted felons to collect credit card debt? Worse, others are caught red handed running scams, like making other people pay alleged debts they don’t really owe. These collection agencies have been routinely caught by the Attorney’s General and have paid hefty fines to bail themselves out of trouble. Unfortunately, the Attorney’s General does not have enough manpower to totally eliminate these scoundrels and some continuously cross the line, violating the rights of debtors.

Ignorant Debtors: One of the most likely reasons why collection agencies even try their luck at bullying debtors is they know most of them do not even know anything about consumer rights laws. They go crazy scaring people out of their wits for unpaid credit card debt and getting more than the actual debt owed. If consumers do not know anything about the law, they cannot make debt collectors accountable for their actions. Debt collectors are always on the lookout for new ways to squeeze every last cent out of debtors so it’s important to educate yourself about the FDCPA and learn what you can do to stop abusive collection efforts.

All these factors play a role in encouraging debt collectors to obtain money through dubious and often illegal collection efforts. The important thing to remember is that there are lows enforced to control these unsavory strategies and you can bet that if you show your debt collectors that you know a thing or two about the FDCPA, they will think twice before they try to bully you into paying.


Street Talk

While it is true there are many complaints about debt collectors, this is a terribly biased and uninformed article. You might want to consider looking at some actual data before making such sweeping statements. The Complaints Issue on insideARM is a current feature that analyzes YTD FTC debt collection compliant data based on a FOIA request by iA. I'd also suggest interviewing some folks with first-hand knowledge of the credit and collection industry. Michael Klozotsky, Chief Content Officer insideARM insidePatientFinance

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  about 7 years ago
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