Feds looks into debt-collection practices


We told you about the debt collection hassles endured by people shouldering a large amount of credit-card debt. Then we invited debt collectors to tell their side of the story. Both sides had a lot to say about just what goes on in the debt collection industry, but one assertion -- by the head of a collections industry trade group -- that debt collectors were courteous and professional raised many eyebrows. Many of you vociferously disagreed with this in the comments section.

As it turns out, government watchdogs agree with you. A new report has led to the Federal Trade Commission stepping up its enforcement of debt-collection abuses.

"I'm pleased the FTC is cracking down on debt collectors, and has identified harassment and targeting the wrong debtors as examples of what's wrong in the industry," Linda Sherry, director of national priorities for Consumer Action, a consumer advocate group, told WalletPop via email.