Debt Collection Problems Highlighted in Review

By Steve Jackson

If you have ever had a problem with a debt collection agency , you are not alone. Data compiled by a Federal agency says abuse by such agencies is not uncommon. Chris Esh of the Washington Public Interest Research Group, WashPIRG, says the Consumer Financial Protection Bureau has put together a list of complaints that consumers have filed over debt collection companies.

Esh: "The most common problems were debt collectors trying to collect debt from the wrong person, about a quarter of all complaints. The second most common offense was repeated phone calls harassing customers. State and federal law prohibits harassing phone calls from debt collectors.”

Esh says the federal agency has helped more than 27,000 consumers to get relief from the debt collection complaints. He says the agency with the most complaints in Washington state and nationwide is Encore Capitol group.
 
The CFPB is preparing to introduce rulemaking that will try to reduce problems in the collection industry.
Some of the agency’s concerns they will try to address include requiring the industry  to stringently verify they are trying to collect from the correct consumers, and clarifying that consumers have a right to sue to stop unfair practices.
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