Debt Collection Archives

Debt collection communications: Protecting Consumers in the Digital Age

Communication technologies have changed considerably since the Fair Debt Collection Practices Act (FDCPA) was first adopted in 1977. Despite technology changes, traditional problems of abusive communications that prompted passage of the FDCPA remain rampant.

Why the CFPB Should Ban Zombie Debt

January 20, 2015

Creditors increasingly sell charged-off debts to debt buyers rather than trying to collect on the accounts themselves. Debts may then be resold again and again between debt buyers with each owner potentially attempting to collect on the accounts. Over the course of these sales and collection attempts, the debts inevitably age. Consumers are routinely confronted…

Strong Medicine Needed: What the CFPB Should Do to Protect Consumers from Unfair Collection and Reporting of Medical Debt

September 20, 2014

A Review of Hospital Financial Assistance Policies in the States The collective scope and impact on consumers from medical debt is enormous. According to the Commonwealth Fund, nearly 75 million working age adults (or about 41%) experienced problems with medical bills in 2012. In addition, 41 million adults (or about 22%) were contacted by a…

Advocates Commend CFPB’s Intent to Address Debt Complaints; Federal Regulators Will Create Proposed Rules to Curb Predatory Debt Collection Tactics

March 3, 2014

WASHINGTON – Year after year, one of the top consumer complaints to the Federal Trade Commission (FTC) is problems with debt collection. Complaints are skyrocketing: from 13,950 in 2000 to 199,721 in 2012 – more than a 900% increase in just over a decade. In January 2014 alone, consumers registered about 3000 complaints regarding debt…

Comments to the CFPB in Response to Advance Notice of Proposed Rulemaking Regarding Debt Collection

February 28, 2014

We applaud the Consumer Financial Protection Bureau (“CFPB”) for initiating this comprehensive and long overdue analysis of the adequacy of the current laws protecting consumers from abusive debt collection activities. Significant change is needed to protect consumers adequately from the growing problems with debt collection in the 21st Century.

NCLC Reports: Debt Collection and Repossessions Edition

September 1, 2009

Special Issue on New Rule Preventing Bank Freezes of Exempt Federal Benefits.

The Debt Machine: How the Collection Industry Hounds Consumers and Overwhelms the Courts

While financial crisis and recession have wreaked havoc on the American economy, the pain has been especially intense for consumers. Millions are now burdened with unpayable debts after they were enticed into borrowing during the credit boom.

Debt Collection Abuses Widespread

July 15, 2010

BOSTON – Debt companies pursuing consumers with a small army of collectors have swamped small claims courts with lawsuits and left a trail of abuses that, in 2009, led consumers to file more than 120,000 complaints with federal regulators. “The Debt Machine: How the Collection Industry Hounds Consumers and Overwhelms Courts,” released today by the…

NCLC Publishes 50-State Report on Unfair and Deceptive Acts and Practices Statutes

February 5, 2009

BOSTON, Mass. – Serious gaps and weaknesses have compromised consumer protection laws in most of the 50 states, and recent court rulings have opened the door to predators and abuses in billions of everyday transactions. So says a new report by the non-profit National Consumer Law Center: “Consumer Protection in the States: A 50-State Report…

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