FTC Credit Report and Collections Updates

In the United States, the FTC (Federal Trade Commission) has taken it upon itself to find ways to stop deceptive and unfair debt collection policies. This would in the end also help people who have experienced negative credit report marks as a result.

Further Explanation

The reason the Federal Trade Commission decided to start cracking down hard on unfair collection practices is because of the extend of the problem. This is a type of fraud and misleading behavior that is causing more and more problems for consumers. Therefore, it seemed fitting to take proper action against certain behaviors that is harmful to consumers.

Actions committed against consumers by debt collectors and creditor include as follows:

• Forcing of paying amounts not owed
• Causing a consumer to somehow unintentionally waive certain collection rights
• Commitment of harassment and badgering consumers
• Performing actions that cause emotional distress such as garnishing wages without notice or not notifying of interest rate increases
• Forcing of people to make payment arrangements they cannot keep
• Calling debtors before 8 a.m. or after 9 p.m.
• Use of obscene, profane, or abusive language by collection agents
• Making threats of violence to consumers who owe money

FTC Progress

Along with the Fair Credit Reporting Act of 2009 the Federal Trade Commission has also taken it upon itself to create new legislation. This new legislation is known as the Fair Debt Collection Practices Act (FDCPA).

This was legislation that was created in 2009. The main purpose of it was to stop illegal debt collection practices such as the ones shown above.

Since this new FDCPA legislation was passed, new reports were made that revealed the types of consumer complaints that the FTC received in 2009. These reports also showed recent developments in FTC law enforcement and a summary of industry education as well as policy initiatives.

All this was done in response to the large numbers of complaints made to the FTC every year regarding unfair debt collection practices. The action and re-enforcement taken against unscrupulous debt collectors is very similar to that of action taken against unfair credit report issuance.

The FDCPA legislation can work hand in hand with Certain Fair Credit Reporting Act legislation. This is all done to help provide rights to consumers who want justice. It is done to help protect U.S. consumers even if they do have money they owe going to collection.