The debt collection agency business has skyrocketed in recent years and collectors working for them have been criticized for many techniques used to obtain payments from debtors. According to the Federal Trade Commission’s (FTC) 2011 Fair Debt Collection Practices Act (FDCPA) Annual Report, there were 140,036 debt collection complaints for FDCPA violations in 2010, an increase of more than 17% over the number of complaints in 2009. These complaints included allegations of repeated calls, debt misrepresentation, a lack of written notice, threats of illegal or unintended action, and offensive or abusive language.
But the New York Times reports debt collectors nationwide are seeking to update the regulations they operate under and change their image. Some of the proposed changes include updating the FDCPA to include the ability to contact debtors using modern technology such as email and cell phones, specific language collectors can use when leaving voicemail messages, and a requirement that creditors maintain customer account information for seven years. The industry also supports taking action against debt collectors who violate the law.
New York Times Article:
Federal Trade Commission FDCPA Annual Report:
