Thousands of People Have Problems With Debt Collectors

The Federal Trade Commission (FTC), responsible for enforcement of the Fair Debt Collection Practices Act (FDCPA), has published a report detailing consumer complaints against debt collectors under the FDPCA. The latest report summarizes complaints from 2007.

The total number of complaints received against third-party debt collectors in 2007 was 70,951. This represents about 21% of the all complaints received by the FTC and is about 2% higher than the 2006 total of 69,249 when FDCPA complaints represented almost 20% of the total received. The FTC receives more complaints about debt collection than any other industry.

Most of the complaints are made against collectors asking for more than the lawful amount of payment. This includes collection actions on debts that aren't owed and debts that have been discharged in bankruptcy. This category received close to 40% of all FDCPA complaints.

The second-highest group of FDCPA complaints came from consumers claiming debt collectors harassed them by calling repeatedly. About 20% of complaints fell into this category.

See Summary of Debt Collection Complaints to FTC in 2007 for a complete listing of complaints by category.

The FTC acknowledges the actual number of complaints may be higher since many consumers don't file formal complaints with the FTC, probably because they don't know their rights have been violated. The report also recognizes the fact that many complaints made by consumers aren't true violations of the FDCPA. Still, the FTC stands by the data it's received as a way to judge the debt collection industry.

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