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Worried about Bill Collectors? They Are Getting More Aggressive

By Boyce Watkins, PhD on Jul 11th 2010 1:47PM
Filed under: Personal Finance, Dr. Boyce Money, The Economy

Comments (13)

As the recession hit many Americans hard, one of the industries that began to boom was the debt collection industry. There were more debts to collect, as consumers fell behind on mortgages, credit card payments, etc. The downside is that as the economy struggles, the ability of the consumer to pay bad debts starts to decline. This has caused the industry to become more aggressive.

"The American consumer is really hurting and collectors are having to fight harder to get money," said Robert Andrews, a senior analyst specializing in the debt industry.

There has been a 50 percent increase in the number of harassment complaints since 2009, according to the Federal Trade Commission. They expect that the number is going to jump another 13 percent this year. The top complaint is that of bill collectors who call over and over again, every single day, for weeks.

In addition to calling consumers more often, bill collectors are using stronger, more abusive language. The number of abusive language complaints by consumers went up by 35 percent last year. A 55-year old woman in New York said that a collection agent called her repeatedly, and personally attacked both her and her husband. He then called her sister, ex-boyfriend and her husband's ex-wife's 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 the whole thing was just really unsettling -- it made you wonder who was going to show up at your door." (Source)


Surprisingly, there were even cases of debt collectors threatening physical violence against consumers. There were 2,517 such complaints, double the number from the previous year. Collectors are also being aggressive about the time at which they call, with many of them calling before 8 a.m. or after 9 p.m., demanding more than they are actually owed, or revealing the debt to a third party. They sometimes even threaten jail time against those who owe money to a creditor.

If you find yourself victimized by overly aggressive bill collectors, the law has guidelines that can protect you. The Fair Debt Collection Practices Act, established in 1977, protects consumers from bill collector harassment. It sets limits on when they can call you, what information they can share with others, and what they are legally allowed to say to you in order to collect the debt.

Being in debt is nothing to be ashamed of, and there is nothing embarrassing about being behind the bills. What is important, however, is that you learn your rights to make sure that you are not taken advantage of. Times are getting tough for everyone, That does not mean you need to be a victim of someone paying their bills by collecting on them.


Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, "Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.". To have Dr. Boyce Financial advice delivered to your email, please visit Dr.BoyceMoney.com. To have Dr. Boyce commentary delivered right to your email, please click here.

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