Debt Collectors Inspire The Most Complaints, Say Attorneys General

More complaints were filed last year against debt collectors than any other industry, the National Association of Attorneys General announced Monday.

The group's annual survey of state attorneys general offices identifies the ten industries that generate the most consumer complaints. Auto sales came in second followed by home repair and construction. The top three were unchanged from 2007.

"Debt collectors generate more complaints than any other industry," according to the Federal Trade Commission's Web site.

In a February report on the industry, the FTC cited "major problems" and "recognized that certain debt collection litigation and arbitration practices appear to raise substantial consumer protection issues."

Credit cards were responsible for the fourth-most complaints. In May President Barack Obama signed into law legislation that enacted sweeping reform, to the delight of consumer advocates. Predatory lending and home mortgages came in sixth. Congress is weighing regulatory overhaul in response to the mortgage crisis.

Comments

[ResearchtheFacts]

03:29 PM on 09/01/2009

It is easy to say pay your debts when you are employed. But, become unemployed and let your savings run out then we will have this same conversation.

[FoonTheElder]

01:17 PM on 09/01/2009

Like labor laws, many corporations ignore the laws that are there for debt collection. They feel that the potential penalties for breaking the law are minor compared with the rewards. Because most of what they do is over the phone, it comes down to a he-said, she-said game, which the corporations always have enough money to outlast any legal challenge.

[josephXY]

09:28 AM on 09/01/2009

This is likely to be one the reasons why the media are losing relevance for the consumers,
among the financial pundits. - And it's time people learn that lesson, that it is out in the open.
http://www.youtube.com/watch?v=2I0QN-FYkpw

[joelaf]

09:22 AM on 09/01/2009

The Fair Debt Collection Act (a federal law already on the books for years) is a solid law. You have many protections through it. Most 3rd party collectors break it regularly. The easiest way to end a collection call is to ask "may I record this call?" They know if you have them on tape breaking the law, they are liable for damages. If anyone EVER leaves an answering machine message mentioning the word debt or bill, you have grounds for damages, since the message is available to others, meaning they have disclosed personal info. I pay my debts, but only mine. The biggest issue I have is with calls for unknown people, because some slacker collecter called directory assistance.

[Ishmael1]

08:15 AM on 09/01/2009

I've been out of work and caring for a invalid wife for 3 years now. We had some savings built up and I dutifully made more than the minimum payment ahead of the due date for most of that time. After our money ran out, the collection calls started. If my wife answered, she'd tell them that our Uncle paid those off, you know, our Uncle Sam in the bank bailouts. If I answer the phone, I tell them I'll be more than happy to pay them if they'll give ME a job. When they start the whole deadbeat accusations, my reply is, :Gee. I guess that makes me no better than YOUR Board of Directors". If they threaten me, I caution them on the wisdom of threatening the precision-guided weaponry expert, ask them if THEY know any al qaeda members and for their Corporate HQ street address for the guidance system as I'm nearly finished packing all the pennies around the HE in my "Payment Package".

[randeg]

07:35 AM on 09/01/2009

This is good news to be out in the open. Well, it's not really good but only in the sense that if this is out in the open those debt collectors will be more careful in their dealings with the public. At least that is my hope. Others may disagree and I don't blame them because the complaints against this industry are rampant.

Evelyn Guzman
http://www.debtchallenges.com (If you want to visit, just click but if it doesn’t work, copy and paste it onto your browser.)

[dadw5boys]

06:34 AM on 09/01/2009

This is play money people ! It is not real money it's Federal Reserve Notes .

Treat it like the play money it is . The play debt too !

As long as they have their attack dogs the Central Bankers loose in the USA your never gonna win anyway the Central Bankers get it all. We are only paying for our own slavery !!!!

So have fun forget paying them fork them !!!!

[dadw5boys]

06:29 AM on 09/01/2009

ACT LIKE A RICH REPUBLICAN !!!!!!

Get your home put in a trust !!!!!! After 5 years the can not touch it for a Bankruptize .

Use every trick in the book not to pay them anything !

Republicans will even get Divorced just so one can go Bankrupt and the other one can get mew Creidt Cards. They put the Divorce on Creidt Cards too. lol

I know one couple gets Divorced every 5 years.

[babybelle]

06:19 AM on 09/01/2009

Nobody should have to pay interest to a collector, yet legally they are allowed to tack on interest to money they are trying to collect.
They can even keep someone in the dark about the interest they are piling on!
Interest is *supposed* to be from money borrowed. Nobody borrowed money from a collector !

These collectors should be shut down. Let the original creditor be responsible for collecting a debt, and if they are unable to collect it, let them get a tax break. This selling debt for pennies on the dollar and then harassing someone who obviously can't pay is ridiclous!

[dadw5boys]

06:15 AM on 09/01/2009

Turn every call from a collector into a phone sex call @@

Do not file bankruptize !!!!!
If you file bankruptize you turn UNSECURED DEBT into SECURED DEBT do not do it !!!!

Do not play their game. Force them to get a Judgement ! Let them come get junk !

Say good when do we go to court. Drop me a line lets have lunch BBFN !!!!!!!

[Noble]

03:28 AM on 09/01/2009

I'm all for regulating unfair and harassing collections practices but it's getting to the point out there where the neighbor's kid needs to run a credit check so he knows if you'll pay after he mows your lawn.

[RufusFender]

12:35 AM on 09/01/2009

The solution is simple. Get a telephone recorder. Answer only those calls you wish to answer.
Abusive collectors will get tired of leaving messages after two or three years (and if they say on the recorder they are sending the cops over, laugh, laugh, laugh). This is 100% a civil matter and
0% criminal, so cops don't apply but they are serial liars and love to scare folks.

[itssafetosay]

10:57 AM on 09/01/2009

In some places police are used to serve summons to court if they sue you, which happens to people - check out some of the credit boards. Even if you make it past the statue of limitations for your state, many people report being sued (even 10 years later) and have to fight and go to court where it is dismissed.

Problem is that these collection agencies resell the debt over and over again. I have heard of people who paid off the debt with one collection agency only to have another pop up with another and they try to collect.

They need to go away and have the original creditor go after the debt.

[groosemoose]

12:27 AM on 09/01/2009

The WORST are the debt collectors who call grieving relatives and trick them into thinking they have to pay their lost loved one's debts. Those people are evil.

[connordad]

01:59 PM on 09/01/2009

I had a collection agency call me said I owed 192.00 from 1992, talk about desperate.I said do not call me again

[sueinmn]

12:21 AM on 09/01/2009

Congress had better do more than just wigh in!

[janeycat]

12:01 AM on 09/01/2009

my ex used to play with them when they would call...it was so funny....any time we would get a call when he was home we would give him the phone...me and the kids would sit and listen...so funny
he would ask for there phone number............most of them are young kids working after school...there easy to mess with

now all i get are the recordings.....robo calls.....its hard to get to a human....i have got a human and asked to be put on there " do not call list " it dosen't help...the robo calls again the next week

kept getting calls about my car insurance...i dont own a car
then it was about my credit cards.....i dont have any credit cards
sometimes its for someone i dont even know ......i have registered my # with the " do not call regestery center " but it does not help

now i'm with BarryS.....death penatily all the way

[SMAckley]

12:47 AM on 09/01/2009

If you paid your debts you wouldn't be getting collection calls.

[ObamAtomic]

01:20 AM on 09/01/2009

Here we go again,if you paid your debts.
HAHA!
After I your post,haha.

[useyourbrain]

01:45 AM on 09/01/2009

I didn't get my ten million dollar bonus last year. Am I to blame for that?