Consumers Complain Debt Collectors Using Unfair Tactics

Data compiled by CFPB may lead to stricter rules.

Mar 20, 2014

Consumers Complain Debt Collectors Using Unfair Tactics

Consumers are being hounded for The only shortcoming of living beyond one’s means. Ultimately, though, costs associated with debt repayment (fees, interest, etc.) diminish consumers’ ability to spend they do not owe by collectors, according to a new report issued Thursday by the Consumer Financial Protection Bureau (CFPB).

The agency, which started collecting debt collection complaints in July 2013, has received more than 30,000 from consumers. Consumers said collectors were using aggressive tactics to collect debts they didn’t owe. About 30 million consumers had on average a debt of $1,400 subject to collection in 2013 and there are 4,500 debt collection firms nationwide, according to the agency.

CFPB data found that more than one-third of the complaints were about debt collectors repeatedly trying to collect money for a debt the consumers said they did not owe, was already paid, was the result of identity theft or was discharged in bankruptcy. Also among the tops complaints were that collectors were using inappropriate tactics, such as calling repeatedly, calling consumers at their places of employment, using foul or obscene language or calling the wrong number. Consumers also said that collectors used several threats, including arresting, jailing, suing, or seizing their property if the debt wasn’t paid.

The Fair Debt Collection Practices Act regulates what actions debt collectors can use. CFPB is also reviewing the information it is gathering and may issue new rules.

Below is a list of the types of debt collection complaints listed in the CFPB report.

FDCPA Complaint Category	Total 2013 Complaints	Percentage of 2013 FDCP A Complaints	2013 Category Rank	Total 2012 Complaints	Percentage of 2012 FDCP A Complaints	2012 Category Rank
Repeated Calls	23,582	39.0%	1	37,543	36.5%	2
Misrepresent Debt Character, Amount, or Status	23,068	38.1%	2	39,993	38.9%	1
Falsely Threatens Illegal or Unintended Act	20,627	34.1%	3	30,470	29.6%	3
No Written Notice	17,502	28.9%	4	26,139	25.4%	4
Falsely Threatens Arrest, Property Seizure	16,882	27.9%	5	24,062	23.4%	5
Fails to Identify as Debt Collector	11,941	19.7%	6	17,873	17.4%	6
Repeated Calls to Third Parties	10,026	16.6%	7	16,679	16.2%	7
Improperly Calls Debtor at Work	9,761	16.1%	8	14,482	14.1%	8
Uses Obscene, Profane, or Abusive Language	8,652	14.3%	9	13,329	13.0%	9
Reveals Debt to Third Party	8,571	14.2%	10	12,272	11.9%	10
Refuses to Verify Debt After Written Request	6,361	10.5%	11	9,814	9.5%	11
Collects Unauthorized Fees, Interest, or Expenses	5,605	9.3%	12	9,034	8.8%	12
Calls Before 8:00 a.m., after 9:00 p.m., or at Inconvenient Times	4,656	7.7%	13	8,166	7.9%	13
Calls Debtor After Getting “Cease Communication” Notice	2,906	4.8%	14	4,928	4.8%	14
Uses or Threatens Violence	2,502	4.1%	15	3,312	3.2%	15