FTC Focuses On Debt Collection

The Federal Trade Commission’s annual report put a strong focus on debt collection; state agencies for have responded by issuing alerts and content to help their citizens deal with debt collectors.  In Washington state, the  Department of Financial Institutions (DFI) recently sent out an alert on debt collection scams in the state.“Consumers should be on high alert when receiving a collection call about a debt if the consumer has any question about the validity of the debt,” the DFI said in its press release.  “Scam collectors have claimed to be from law offices, the FBI, and other law enforcement and governmental agencies.”  DFI Director Scott Jarvis said in a statement, “It’s appalling how many people will try to prey on others just to make a few bucks. We hope to limit the damage to Washington consumers by raising awareness of this scam, which is criminal.”The alert also reminds people that debt collectors must play the established rules of the Fair Debt Collection Practices Act (FDCPA).  People should stay alert for certain warning signs on collection calls: if the caller won’t provide provide written validation of the debt or even a mailing address, it’s a sign the debt, or the company calling, is not genuine.  Besides Washington state, the Attorney Generals of New Jersey, Jeffrey Chiesa, and the New Jersey Division of Consumer Affairs spoke up on the issue, announcing the release of a Debt Collection Handbook and accompanying video, titled “Understanding Debt Collection.”  This book and video, designed to educate people on their rights as consumers when contacted regarding debt, was funded by a grant from the Sears Consumer Protection and Education Fund.If a collection agency has harassed you, you may be entitled to money damages up to $1,000.00, based on the FDCPA, which has been around for almost 35 years.  The FDCPA is a federal law that applies to every state.  In other words, everyone is protected by the FDCPA.  The FDCPA is essentially a laundry list of what debt collectors can and cannot do while collecting a debt, as well as things debt collectors must do while collecting a debt.  Plus, the FDCPA has a fee-shift provision.  This means, the collection agency pays your attorney’s fees and costs.  Founding attorney, Michael Agruss, has settled over 1,500 debt collection harassment cases.  We want to help you, too.