Once again, federal regulators are cracking down on companies running “phantom” debt collection schemes that go after individuals for money they did not actually owe. This time, the Federal Trade Commission shut down an operation that collected more than $690,000 in fake debts by threatening consumers with lawsuits or arrests. [More]
debt collectors
Debt Collector Allegedly Threatened Lawsuits, Arrests Against People Who Didn’t Owe Anything
By 7.17.17
Former Lobbyist, Son Of Student Loan Debt-Collector, Resigns From Dept. Of Education
By 3.22.17
In our recent story on the Trump administration’s decision to roll back protections for potentially millions of student loan borrowers, we also told you about new Department of Education advisor Taylor Hansen, a former lobbyist for the for-profit college industry whose father is the CEO of a student loan debt collection company that has been suing Taylor’s new employer since 2015 for the right to charge thousands of dollars in fees to people who are already having trouble paying back their loans. Now comes news that Hansen’s brief life as a federal employee has come to an end. [More]
Lawmakers Try Again To Close Loophole Allowing Government To Make Debt-Collection Robocalls
By 3.8.17
Once again, federal lawmakers are trying to close a recently opened loophole that allows the federal government — and, by extension, contractors working for the government — to blast out automated, unwanted, possibly incorrect, debt-collection robocalls. [More]
Illegal Debt Collectors Prey On Victims’ Doubts To Collect Money They Don’t Owe
By 2.10.17
For years, Consumerist has written about unscrupulous debt collectors that have attempted — sometimes successfully — to collect thousands of dollars from consumers who don’t actually owe a debt. This type of scheme is apparently alive and well in Illinois, where investigators say the ploy is one of the most popular for alleged con artists preying on residents, prompting the state’s Attorney General to file suit against at least one such operation. [More]
Feds Go After “Massive, Illegal” Debt-Collection Operation
By and 11.2.16 — Updated: 11.4.16
A large, nationwide debt-collection operation that allegedly brought in tens of millions of dollars through illegal means — like impersonating law-enforcement officers, or threatening arrest for non-payment — is the target of a joint legal action by the Consumer Financial Protection Bureau and the New York state attorney general. [More]
Debt Collector Gets Out Of Lawsuit… By Buying The Lawsuit Out From Under The Plaintiff
By 8.16.16
When you sue a debt collector for allegedly violating federal law, that collector can’t just go behind your back, buy the debt on the cheap at auction and get the whole case dismissed, can it? That tactic worked for one collection agency and, depending on how a federal appeals court rules, it could lead to many other debt collectors buying their way out of legal trouble. [More]
What You Need To Know About New Rules Allowing Debt Collection Robocalls From Feds
By 8.11.16
If you ask any American to name the things they love the most, they are sure to reply, “debt collectors, intrusive pre-recorded phone calls, and the federal government!” So today — under orders to do so from a piece of rushed, tacked-on legislation — the Federal Communications Commission released its final rules allowing the federal government and some of its contractors to make debt-collection robocalls to wireless lines. [More]
New Rules Would Require Debt Collectors Have Proof You Actually Owe Money
By 7.28.16
One of the most common complaints about debt collectors is that they harass people over debts that are either no longer owed, or weren’t owed in the first place. Federal regulators are now proposing rules that — among other protections — would cut down on these annoying, bogus collections actions by requiring that debt collectors have some sort of evidence that the person they are calling actually owes money. [More]
Here’s How To Tell The FCC How You Feel About New Debt Collection Robocall Loophole
By 5.19.16
Now that the government has carved out a loophole allowing it to place automated and/or pre-recorded robocalls to consumers to collect any debts owed to the federal government, the FCC is trying to come up with robocall rules that aren’t entirely awful. Consumers have a short window of time to chime in on these rules, so here’s how to share your feelings with the FCC. [More]
Supreme Court OKs Private Debt Collectors’ Use Of Prosecutors’ Letterhead To Make People Pay
By 5.16.16
What’s more likely to get you to pay a questionable debt: A notice from some debt collection company you’ve never heard of, or a letter from your state’s attorney general about that same debt? Some states allow certain private, for-profit debt collectors to use prosecutors’ letterhead in correspondence with consumers about debts, even though the American Bar Association looks down on the practice. This morning, the U.S. Supreme Court chimed in on the debate, unanimously giving its SCOTUS seal of approval, at least when it’s done with the state’s approval. [More]
Student Loan Companies Tell Congress: Debt-Collection Robocalls Are In Borrowers’ Best Interest
By 3.10.16
Show me someone who supports robocalls, and I’ll show you someone that has very few friends. Which is why it’s baffling that the Senate has yet to act on a bill introduced last fall that would close a loophole allowing the government to make debt-collection robocalls. But you know who does support robocalls? The student loan companies that are currently trying to convince Congress that these invasive annoyances are really for our benefit. [More]
Lawmakers Renew Push To Curb Unwanted Robocalls
By 3.7.16
In the last few days, legislators in both the House and Senate have once again pushed the issue of nuisance pre-recorded, auto-dialed robocalls back into the spotlight — urging telecom providers to give customers more tools for blocking these calls, and trying to roll back the government’s ability to abuse robocalls for its own debt-collection purposes. [More]
Debt Collectors Can Sue You, But Court Might Not Let You Sue Debt Collector Back
By 12.22.15
A new report claims that a growing number of debt collectors are trying to exploit a legal loophole that allows them to bring potentially frivolous lawsuits against alleged debtors, but bars those defendants from bringing their own legal action against the debt collector. [More]
7 Things We Learned About Federal Student Loans & The Companies That Profit From Them
By 12.11.15
Fifty years ago, Congress created the federal loan program as a way to help Americans realize their dreams of a better life through higher education. While millions of students have no doubt benefited from the program, millions of others have found themselves burdened by mountains of debts, fielding calls from debt collectors and loan servicers, and watching as their paychecks are whittled down by garnishments. Today, seven million former college students are in default with a record $115 billion in federal loans. While those figures may be oppressing borrowers, it’s providing a stream of income – and profit – for companies contracted by the government to collect payments from debtors. [More]
Florida Man Spends 17 Years Challenging Debt He Never Owed In The First Place
By 8.10.15
Imagine you wake up one day to find out that you suddenly owe nearly $100,000 on a house you’ve never owned, in a city where you’ve never resided. Should be easy enough to sort that out, right? Tell that to the Florida man who has spent the better part of two decades trying to convince creditors he didn’t buy property in Philadelphia when he was 12 years old. [More]
Jury Hits Debt Collector With $83 Million Verdict Over Bogus $1,130 Debt
By 5.19.15
A jury in Missouri recently awarded $251,000 in damages to a local woman who was wrongfully sued by a debt collector — more than 222 times the amount she’d been sued over — but that’s nothing compared to the additional $82.99 million in punitive damages assessed against the collection company. [More]
Robocalling Phantom Debt Collector Accused Of Harassing, Defrauding Consumers
By 4.8.15
People hate debt collectors, perhaps as much as, if not more than, they despise robocalls from telemarketers. And phantom debt collectors — those who attempt to collect debts that aren’t owed to them, if at all — are among the worst of the bunch. So when you combine the automated recorded messages of robocalls with the incessant harassment of phantom debt collectors, you create a particularly loathsome Frankenstein’s monster. [More]
U.S. Department Of Education Cuts Ties With Five Debt Collection Agencies To Protect Borrowers
By 3.2.15
Consumer advocates applauded the Department of Education’s announcement last week to end contracts with five private collection agencies that provided inaccurate information to borrowers. [More]
