December 2, 2009

By Michelle Grinberg

We all know by now that due to the unstable economy the amount of debt owed by consumers in the United States is greatly increasing. Debt collectors have been taking advantage of consumers who owe alleged debts by using deceptive tactics to “scare” them into paying these debts. Such debt collection practices, however, violate the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. §§ 1692, et. seq.

Cases alleging a violation of the FDCPA are hitting an all time high. The Federal Trade Commission (“FTC”) released a report in 2008 which states that the amount of complaints received concerning the debt collection industry outnumbers the number of complaints received in any other specific industry.
However, some conduct complained of by consumers does not constitute an FDCPA violation while other conduct may not be reported because consumers do not realize it constitutes a violation. The following reported violations were the most common complaints received by the FTC, as per their 2008 Annual Report on the FDCPA:

• Demanding from the consumer either a larger debt than actually owed or attempting to collect a debt the consumer does not owe;
• Harassing the consumer through repeated phone calls, using obscene, profane, threatening or abusive language, and/or calling before 8:00am or after 9:00pm;
• Threatening actions which the debt collector has neither the legal authority nor the intent to take, such as the initiation of a lawsuit, garnishment of wages, seizure of property, or damage to consumer’s credit;
• Prohibited phone calls to the consumer’s place of employment;
• Disclosure of alleged debts to third parties, such as employers, co-workers, parents or friends;
• Failing to send consumer notice as required under the FDCPA;
• Failing to provide consumer with written verification of a disputed debt, if requested by the consumer in writing; and
• Continuing to contact the consumer after the consumer request all further communication cease and desist.

Given the continuous violations of the FDCPA by debt collectors, there is a growing need for attorneys who specialize in spotting such violations to protect consumers from unfair debt collection practices. Often consumers do not understand their rights with respect to the collection of alleged debts. Therefore, if a consumer believes that he has been subject to unfair debt collection practices, they should be diligent in contacting an attorney to help spot any actionable violations.