| Increased FDCPA Lawsuits Signal Successful Crackdown on Debt Collectors
The recent increase in FDCPA lawsuits indicates consumers are fighting back against debt collectors that violate fair debt collection laws.
Executives at ADMA Solutions, LLC, a debt settlement company, are praising the increased actions against unscrupulous debt collectors that violate fair debt collection laws.
October marked a continued increase in lawsuits against debt collectors: 503 lawsuits were filed in the second half of the month, bringing the total number of lawsuits this year to 9,564, according to WebRecon, LLC, a research firm.
“Debt collectors must follow fair debt collection laws, even as the economy is making it difficult to collect from financially-strapped consumers,” explained ADMA Solution’s CEO Dave Leuthold.
With the unemployment rate at nearly 10% and a large number of families struggling with credit card payments, many simply cannot afford to keep up with their minimum monthly payments. Under pressure to collect, some debt collectors are breaking the law by harassing and deceiving consumers to frighten them into making payments.
“Fortunately, more and more consumers know that they are protected by the FDCPA,” continued Leuthold. “Even when falling behind in payments, consumers are protected under the law.”
The FDCPA, or Fair Debt Collection Practices Act, is a law designed to protect consumers from harassing and deceptive debt collection practices. According to WebRecon, the majority of the lawsuits filed so far this year are in response to FDCPA violations (8,953). Other violated laws include the Fair Credit Reporting Act (1,069), the Truth in Lending Act (457), and the Telephone Consumer Protection Act (148).
On top of the increasing lawsuits aimed at the debt collection industry, the total number of complaints filed against the debt collection industry has also risen in recent years. According to their annual report, the Federal Trade Commission (FTC) received 88,190 complaints about third-party debt collectors in 2009 (up from 78,925 in 2008, 70,951 in 2007, and 69,249 in 2006). The FTC received more complaints about the debt collection industry than any other single industry, and it estimates that the number would be higher if all consumers recognized violations and knew how to report them.
“Consumers need to know that debt collectors are not allowed to engage in certain types of harmful behaviors, like making unlawful threats, calling after 9pm, or discussing the debt with a third-party, like a family member or neighbor,” explained ADMA Solution’s President Amy Michalo-Rojas. “When consumers understand what debt collectors are not allowed to do, they can better protect themselves from the hassle and anxiety that comes from dealing with unscrupulous debt collectors.”
Michalo-Rojas and Leuthold recommend all consumers read the FTC’s Guide for Consumers to learn what types of behaviors are prohibited. Learn more at here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit /cre18.shtm
“When consumers know their rights, they can report violators,” said Leuthold.
Not only are ADMA’s clients protected by the FDCPA, but also they have access to the United Consumer Advocacy Network, LP (UCAN), an organization that helps debt settlement clients who become victims of debt collection abuse. Leuthold encourages ADMA clients to contact UCAN if they believe their rights have been violated.
SBWIRE, 12/02/2010
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