FTC Resources for Reporters
Debt Collection
Debt collectors generate more complaints to the FTC than any other industry. Although many debt collectors are careful to comply with consumer protection laws, others engage in illegal conduct. Some collectors harass and threaten consumers, demand larger payments than the law allows, refuse to verify disputed debts, and disclose debts to consumers’ employers, co-workers, family members, and friends. Debt collection abuses cause harms that financially vulnerable consumers can ill afford. Many consumers pay collectors money they do not owe and fall deeper into debt, while others suffer invasions of their privacy, job loss, and domestic instability.
The FTC enforces the Fair Debt Collection Practices Act (“FDCPA”), which prohibits deceptive, unfair, and abusive debt collection practices. Among other things, the FDCPA bars collectors from using obscene or profane language, threatening violence, calling consumers repeatedly or at unreasonable hours, misrepresenting a consumer’s legal rights, disclosing a consumer’s personal affairs to third parties, and obtaining information about a consumer through false pretenses. Because certain practices that violate the FDCPA also violate the FTC Act, the FTC also uses the FTC Act to halt unfair or deceptive debt collection practices.
The FTC has sued over 30 debt collection companies for violating the law, banning some from the business and making them pay steep financial penalties. The FTC also has recommended that Congress and the states modernize the debt collection laws to reflect changes in consumer debt, the collection industry, and technological developments that affect consumers and collectors alike. For example, a 2010 FTC report concluded that the process that many debt collectors use to sue alleged debtors or force them to arbitration is seriously flawed and causes substantial consumer harm. The report recommended that government, industry, and others adopt significant reforms.
News Releases
- FTC Returns Just Over $11,000 to Consumers Who Were Allegedly Charged an Illegal Advance Fee for a Credit Repair Product – 09/28/2012
- FTC Joins Amicus Brief Opposing Federal Court Finding On Consumers' Rights Under the Fair Debt Collection Practices Act – 08/16/2012
- Debt Collectors Settle with FTC, Agree to Stop Deceiving and Abusing Consumers – 05/15/2012
- Court Halts Alleged Fake Debt Collector Calls from India, Grants FTC Request to Stop Defendants Who Posed as Law Enforcers – 04/11/2012
- FTC Charges Payday Lending Scheme With Piling Inflated Fees on Borrowers and Making Unlawful Threats When Collecting – 04/02/2012
- FTC Highlights Expanded Work on Debt Collection Issues Over the Past Year – 03/20/2012
- As a Result of FTC Action, Two Defendants in Abusive Debt Collection Case Are Banned From the Industry, Will Surrender Assets – 03/15/2012
- FTC Charges That Payday Lender Illegally Sued Debt-Burdened Consumers in South Dakota Tribal Court Without Jurisdiction – 03/07/2012
- Court Halts Alleged Fake Debt Collector Calls from India, Grants FTC Request to Stop Defendants Who Often Posed as Law Enforcement – 02/21/2012
- Under FTC Settlement, Debt Buyer Agrees to Pay $2.5 Million for Alleged Consumer Deception – 01/30/2012
- Court Rules in Favor of FTC; Orders Defendants in Payday Lending Case to Pay More Than $294,000 for Illegal Garnishment of Consumers' Paychecks – 12/19/2011
- At FTC's Request, Court Orders Debt Collection Operation to Stop Deceiving and Abusing Consumers – 10/26/2011
- FTC Issues Final Policy Statement on Collecting Debts of the Deceased – 07/20/2011
- FTC Files Amicus Brief in U.S. District Court Opposing Proposed Class Action Settlement with Debt Buyer Midland Funding LLC – 06/23/2011
- FTC to Hold Workshop on Ways to Protect Consumers As Debt Collection Technologies Change – 04/25/2011
- FTC Submits 2011 Fair Debt Collection Practices Report to Congress – 03/21/2011
- Leading Debt Collector Agrees to Pay Record $2.8 Million to Settle FTC Charges – 03/16/2011
- Debt Collector Will Pay $1.75 Million to Settle FTC Charges – 10/21/2010
- Debt Collectors Will Pay More Than $1 Million to Settle FTC Charges – 03/03/2010
- Debt Collection Supervisors Settle FTC Charges – 01/07/2010
- Debt Collectors Settle with FTC; Abusive Practices Affected Consumers Nationwide – 07/02/2009
- Bear Stearns and EMC Mortgage to Pay $28 Million to Settle FTC Charges of Unlawful Mortgage Servicing and Debt Collection Practices – 09/09/2008
- Defendants in Debt Collection Scheme Aimed At Hispanics Agree to Settle FTC Charges – 06/05/2008
- Court Enters Final Order in FTC Action Against Florida Debt Collectors – 01/28/2008
- Nationwide Debt Collector Will Pay $1.3 Million to Settle FTC Charges – 11/06/2007
- Debt Collectors Agree to Settle With FTC – 07/05/2006
Reports and Workshops:
- FTC’s 2011 Report to Congress on Administering and Enforcing the FDCPA
- FTC’s 2010 Report to Congress on Administering and Enforcing the FDCPA
- FTC 2009 Workshop Report: Collecting Consumer Debt
- Repairing a Broken System: Protecting Consumers in Debt Collection Litigation & Arbitration
Business Education
Consumer Information
- Money Matters: Debt Collection
- In Debt?
- Who's Calling? That Debt Collector Could Be a Fake
- Debt Collection Arbitration: The Who, What, Why and How
- Debt Collection FAQs: A Guide for Consumers
- Knee Deep In Debt
- Time-Barred Debts: Understanding Your Rights When It Comes to Old Debts
- Dealing With Debt Collectors
Congressional Testimony
- The Debt Settlement Industry: The Consumer’s Experience – April 22, 2010
- Financial Services and Products: The Role of the FTC in Protecting Consumers – Feb. 4, 2010
- How the FTC Works to Halt Fraudulent Schemes Exploiting the Economic Downturn and the Stimulus Package – Sept. 10, 2009
- Leveraging FTC Resources To Protect Consumers of Financial Services and Promote Competition – March 31, 2009
- Consumer Credit and Debt: The Role of the Federal Trade Commission in Protecting the Public – March 24, 2009
- Consumer Protection and the Credit Crisis – Feb. 26, 2009
Tweets
- Debt Collection Workshop 2.0 – April 28, 2011