FTC Reports Increasing Collection Abuse Complaints
November 10, 2008
Are you the victim of collection abuse? As economic problems in America worsen, debt collection methods become more aggressive. People are unable to pay their bills on time and banks want them to pay up. If a collection agent uses illegal tactics, you might be the victim of collection abuse.
Statistics prove more Americans are in debt today than in recent years. The Federal Reserve reported Americans owe about $969 billion in revolving debt such as credit cards. In 2003, Americans owed a total of $770 billion, showing debts have continued to soar over the past five years.
Simultaneously the cost of basic necessities such as gas, utilities and food increased. Many Americans found themselves unable to pay their credit card bills on time. The American Bankers Association revealed 4.5 percent of bank-issued credit cards were delinquent during the second quarter of 2008.
With so many debtors, debt collection is a top priority for banks. A recent Associated Press article discussed aggressive collection efforts and how the public feels about them. The article stated 71,000 people filed harassment and abuse complaints about bill collectors with the Federal Trade Commission last year.
There were 14,000 additional people who complained about bill collection abuse to the Better Business Bureau (BBB). David Polini, president of the upstate New York BBB chapter, said, “And it is going to get worse. With the recession, with the horrible credit problems, this is going to be off the charts.”
During the days of easy credit before the current economic crisis, many people took on major debt. If you are one of these people, you may be facing debt collection and collection abuse. The following are a few rules debt collection agents must follow:
-
They can only call between the hours of 8 AM and 9 PM.
-
The phone cannot be repeatedly used to annoy you.
-
Unwarranted charges cannot be added to your bill.
-
Any discussion of legal action must be completely truthful.
-
Debt collectors cannot threaten to have you arrested or curse at you.
Even if a debt collector is on the receiving end of a hostile debtor, they cannot act in any of the above ways. Collection agents can take honest legal action, discuss legitimate debt resolution and report unpaid debts to the three major credit reporting agencies.
If you are pursued for a debt that you did not incur, you might be dealing with a collection agency that buys old debt records. “Zombie debts” may not belong to you so never agree to pay a debt if you are unsure you incurred it.
Minnesota Attorney Genera, Lori Swanson, comments, “We’ve seen people being pursued over debts that are 8, 9 or 10 years old.”
When you face debt collection, know your rights. Collection abuse is against the law. Check your credit report and know what you really owe. Consult with a professional to ensure you only pay off legitimate debts. As soon as a professional acts on your behalf, those annoying telephone calls and letters will slow down.
If you enjoyed this post, make sure you subscribe to my RSS feed!
Comments
One Response to “FTC Reports Increasing Collection Abuse Complaints”
Got something to say?
You must be logged in to post a comment.
-
New York Bankruptcy Litigation- Chase Home Finance, Caught Manufacturing Defaults In Bankruptcy Court, Nears Deal With US Trustee
- Can You Wait For The New Bankruptcy Bill?
- What Debt Are Not Covered By Bankruptcy?
- Violations of the Bankruptcy Discharge - Catching Creditors in the Act
- What Happens to My Pension if My Company Files Bankruptcy?
[...] FTC Reports Increasing Collection Abuse Complaints | New York Consumer Litigation [...]