Debt Collection Agency Complaints

Debt collection agencies are not popular with consumers. When a uncollected debt has reached levels where the creditor feels it will not get paid, it turns the case over to a debt collection agency. The agency initiates contact with the debtor to collect the payments. Often this leads to complaints from the debtors.

Harassment

The biggest complaint about debt collection agencies is harassment. Some collectors are relentless in pursuing those who have fallen behind in payments. Common complaints include multiple calls per day, calls at work, calls to family members and calls at unreasonable hours (e.g., early morning or the middle of the night).

Abuse

Constant harassing phone calls are troubling enough, but some debt collectors cross the line from insistent to abusive. Just because you have had trouble paying bills does not mean that debt collectors have the right to mistreat you. Common complaints include foul language, condescending attitudes and outright threats. A debt collector should maintain professionalism throughout his interaction with the customer.

False Statements

Sometimes, a debt collector will make false claims just to scare you. For example, the collector may say he is an attorney or law enforcement and that you are in danger of imprisonment. Another is that your wages will be garnished or that the agency will empty your bank account. Federal Trade Commission (FTC) guidelines prohibit debt collection agencies from making false statements in an attempt to collect past due obligations.

Insufficient Notice

Some debtors do not even know that the accounts in question have been transferred to a collection agency. When the phone calls start, you may not have any idea who these people are and why they have your information. Your first instinct will be to end the phone call, but this may just serve to increase the agency's efforts toward you. If this happens, call your creditor immediately to find out if and why your account has been transferred.

Mistaken Identity

Sometimes debt collection agencies target the wrong person. This can happen for a number of reasons. It can be someone with the same name as you, a similar address or phone number or even an acquaintance or family member. Your efforts to tell them it's not you may be in vain, because the collector will assume you are lying to throw them off.

What to Do

If you feel you have been unfairly treated or harassed by a debt collection agency, report the company to the FTC by calling their help line at 1-877-382-4357 or visiting their website. The site has a video that details the complaint filing process.