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LAWSUITS NEWS & LEGAL INFORMATION

New Debt Collection Regulations Under Consideration

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Pittsburgh, PADebt collector harassment is already illegal in the United States, but laws have not stopped bill collector harassment from occurring. Every day, more people complain about being harassed by people attempting to collect on bills, regardless of whether the debts claimed are actually owed. Debt collector lawsuits have been filed, alleging consumers have been unfairly or illegally targeted, and now the Consumer Financial Protection Bureau (CFPB) is asking for input on debt collection experiences.

Currently, federal laws protect consumers from certain debt collector practices. These practices include phoning outside of regular hours, making harassing phone calls, using threatening or obscene language when collecting on debts, continuing to make calls despite receiving a “cease communications” notice, and giving information to a third party without consent. Other issues with the debt collection industry include collecting on a non-existent debt, collecting on a debt from the wrong person and collecting on a debt that has already been paid.

Now, the CFPB is taking note about concerns with the industry, and is considering updating debt collection laws. Consumers who have had experiences with debt collection agencies are encouraged to share their story with the CFPB.

In a March 20, 2013 report entitled “Fair Debt Collection Practices Act,” the CFPB noted that approximately 15 percent of American adults had debt that was or had been subject to collections processes. In 1977, the Fair Debt Collection Practices Act was passed after Congress found evidence of “abusive, deceptive, and unfair debt collection practices by many debt collectors.” But since that law was passed in 1977, changes in the industry and technology have altered how debt collectors operate.

The report notes that the Federal Trade Commission (FTC) received a greater number of complaints about the debt collection industry than any other single industry. This included complaints about third-party debt collectors and in-house debt collectors. Although the number of complaints was down from 2011 to 2012, there are still concerns about how debt collectors operate.

For example, in 2012, the FTC received more than 37,000 complaints that accused debt collectors of calling repeatedly or continuously. That same year, there were more than 13,000 complaints that collectors used abusive, obscene or profane language.

Lawsuits have been filed by consumers and officials against some debt collection agencies, alleging the companies have broken the law in their debt collection practices.

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READER COMMENTS

Posted by

on
ROBO calling should be outlawed for all types of debt collection. My son used my phone number for a loan he did not pay... and I am getting between 1 and 4 calls a day (with nobody on the other end). I told the original loan company I am not the debtor and to quit calling. But they have sold the loan several times... and each time the ROBO calling begins again. I now do not even answer my land line. I would drop my land line except I have had it for 45 years and many people still try to reach me on it. Its a "no win" ballgame for me!

Posted by

on
i am happy to see the CFPB is finally looking into this one being that i sent a complaint about a collection agency that added a derogatory tradeline to credit report and that's how i found about their allegations, i never received anything in the mail from them before their entry. after a year of letters to them and complaints to every government agency that could possibly help i was able to get the entry removed as the collection agency could not Validate that i owed the debt. i did not owe the debt and that's is why i was so perturbed that they were able to get away with this, i have been able to gain back a little over half of the points i lost with the entry.

here is the Case Numbers i had with the CFPB:
130913-001413
130913-001414

and their response:

We reviewed your complaint and couldn’t send it to the company for a response. This could be because we’re unable to identify and register the company or because your complaint did not involve a Federal consumer financial law within our authority.

Posted by

on
i had a loan with cash call and delbert services will not send me a letter stating it was cash call, they insist it was western sky, i am under the asumption that western sky is out of business, dellbert services took over the loan with out me knowing nothing about them. they said they took over weeastern sky loan, i didnt have a western sky loan it was cash call and i have the contract to prove it. all dellbert services has to do is to tell me they took over cash call's loan not western sky!!!!! i think something is not right here, i dont give my info out to them because i already paid a western sky loan a year ago.

Posted by

on
People call me and my family all the time and threaten them with jail and legal consequences. Threatening to turn their ss # over to the federal government and to go to their work and get them fired.

This is wrong and should be stopped.

Posted by

on
The saddest part of all of this is that lawyers are been part of this scam....lawyers are helping in the collection process and go after you.whether you are the right person or not..u need another lawyer to fight another lawyer.if you have the resoursses.other wise you screw.now most people who dont owe any money they have no fear and ignore it.because they belive in the system ..if is not me i dont have to respond.well guess what .now there is a jugdement .and is to late to do anything about it.how do you stop them from filing or serving to the wrong person...even when they serve you..you tell them .you got the wrong person they move in fast.very fast.they are bringing accounts that are 6 to 10 yrs old...how do you prove you pay? This is happening a lot more today.especially in the latino commiunity.very easy target and they found a way to do it.......

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