Complaints about debt collectors surge

Some debt collectors cross the line to try to get money from people who do not.

Debt collectors are getting desperate and dirty. The harassing phone calls, abusive language and physical violence are becoming a larger part of the activities of debt collectors round fight for money from people who do not.

"The American consumer is really bad and collectors have to fight harder to get money," said Robert Andrews, a senior analyst specializing in the debt industry in the research firm IBISWorld.

Complaints of harassment by debt collectors jumped 50% to 67,550 in 2009, according to the Federal Trade Commission. And they are on track to rise from 13% this year, according to the number of complaints in the FTC first six months.

The No. 1 complaint is repeated appeals, and it is not uncommon for collectors to bombard consumers with calls back to back days, weeks, months or even years.

When the bill collectors finally find someone at the other end of the phone, they are more likely to use the language more wicked. Complaints of debt collection using obscene or abusive language enriched to 35% last year.

A 55 year old woman from New York who asked to remain anonymous, said a collection agent called her house repeatedly personally attack her and her husband. When she refused to answer the phone, the collector has called his sister separated, an ex-boyfriend and ex-wife of her husband of the mother.

"This guy was out of his mind and he kept calling and calling, telling me" You better talk to me, you deadbeat, "she said." He was very threatening and everything was just really disturbing - it makes you wonder who would come to your door."

She was right to worry, since complaints of debt collection threat - or indeed help - violence has more than doubled last year to 2517.

Keary Floyd, a lawyer who represents consumers in the Floyd Law Firm in Atlanta, said that although most of its files involve debt collection phone calls too, one of his recent clients have recorded a conversation disturbing telephone where a debt collector threatened that he or someone else would come to the client's home to get money any way he could.

"I've heard, and if a phone call that would worry about someone, that would be it," said Floyd.

Other aggressive tactics that are becoming more common are the collection agents calling before 8 am or after 21 hours, demanding more money than what is owed, revealing a consumer debt to a third party, or threatening of "serious consequences" as the continuation of imprisonment, seizure of property or loss of employment.

These practices are not only inappropriate, but they are illegal under the FTC Fair Debt Collection Practices Act, which has been around since 1977.

An industry representative said the increase in complaints of harassment should not only be attributed to desperate and aggressive collection agents, but more consumers are trying to profit from lawsuits.

"Certainly, if the collectors are more aggressive, they should not be, but it's not fair to characterize the actions of debt collection that the only reason why there is an increase in complaints - they are not fully to blame, "said Mark Schiffman, a spokesman for the Association of Professional collection and credit.

"There is a growing industry and consumer advocates warn that consumers have learned they can not sue a debt collector to collect relatively easily and very easily," he added.

Consumers are able to make a collector of state or federal court for harassment, according to the FTC. If the debtor is successful, the collector is required to pay for any damage caused by harassment, such as lost income and medical expenses.

Even if the debtor fails to prove monetary damages, but are able to prove harassment, they may receive up to $ 1,000 and are reimbursed for court and attorney fees.