Aggressive Debt Collection a Growing Problem

People hounded by debt collectors often feel violated and unsure where to turn. Aggressive debt collectors can add stress to the already difficult situation individuals are facing. Unfortunately, aggressive and unfair debt collection practices seem to be on the rise.

According to a recent article in the Los Angeles Times, debt collection is now a $12-billion-a-year industry. The economic downturn has caused more people to fall behind on household bills, credit card payments, student loan payments and many other financial obligations. Currently, an estimated 30 million Americans are dealing with debt collectors. This is an increase of almost 50 percent since 2003.

At the same time debt collection laws have become outdated, and there has been lax oversight of the industry. Aggressive tactics being used include: verbal abuse, intimidation, calling at all hours, harassment of neighbors and family members, misrepresentation by debt collectors about who they are and unfounded threats of arrest. Complaints made to the Federal Trade Commission (FTC) about debt collectors topped 180,000 last year, up over 70 percent from 2008. Federal regulators are now considering what reforms need to be made.

The Fair Debt Collection Practices Act (FDCPA) protects individuals against threats, harassment and other attempts at unlawful debt collection. Additionally, if you file for bankruptcy an automatic stay is imposed on all collection activities. This means that while you are in the bankruptcy process creditors cannot pursue actions against you.

An attorney can provide further information and guidance about unfair debt collection and filing for bankruptcy.

Source: Los Angeles Times, "Aggressive debt collection tactics are drawing federal scrutiny," Jim Puzzanhera, August 20, 2012

For more information visit our unfair debt collection page.