Trending Debt Collection Topics – 5/25/15

Get a Free Case Review

  • This field is for validation purposes and should be left unchanged.

With more and more Americans carrying debt, both good and bad, the number of debt collection news headlines is on the rise. From scams and lawsuits to changing laws, debt collection is a hot topic in America right now. The following topics are currently trending in the world of debt collection.

Credit Reporting Agencies Will Change Practices and Pay $6 Million to Resolve Complaints

Consumers are fed up with abusive and annoying tactics used by credit agencies and debt collectors, and the nation’s leading credit reporting agencies are taking the lead responding to those complaints. Reacting to consumer complaints, TransUnion, Equifax, and Experian will pay $6 million to consumers in 31 states to resolve disputes stemming from inaccuracies on credit reports.

Credit Agencies Agree to Fix Errors Faster

The problems are piling up for America’s three major credit reporting agencies. Already paying $6 million to settle claims in 31 states, TransUnion, Equifax, and Experian must also fix their “fundamentally flawed” reporting systems. The three major agencies must move more quickly to resolve disputed information on credit reports, wait longer before adding items to consumer reports, and use more caution when evaluating certain data provided by collection agencies and other third-party groups.

Missouri Woman Awarded $83 Million in Debt Collection Case

An already expensive and embarrassing week for collection agencies got a lot more expensive when a Missouri judge ordered Portfolio Recovery Associates LLC, a leading debt collection agency, to pay $83 million to a woman it wrongly targeted. The agency pursued the women rather than a man with a similar sounding name, even threatening litigation. The Jackson County jury found the company guilty of violations under the Fair Debt Collection Practices Act (FDCPA).

Reisterstown Law Firm Sued Over Debt Collection Practices

A law firm in Reisterstown, Maryland is being sued for its alleged violations of the Fair Debt Collection Practices Act (FDCPA). The Baltimore woman suing the firm claims that its representatives used “false, deceptive, and misleading” information in a letter attempting to collection money due to a local bail bonds company to which she listed as a guarantor of an alleged delinquent bail bond.

FTC Returns Money to Consumers in Phantom Debt Collection Scam

The Federal Trade Commission mailed out checks to consumers this week totally $16,428.74 to reimburse those harmed by a deceptive, and sometimes threatening, campaign to collect payday loan debts. American Credit Crunchers LLC used the alleged behavior to victimize consumers who had received or inquired about payday loans using online forms. Callers representing the company impersonated law enforcement officials and threatened consumers with jail time if they did not pay off purported debts.

Bill Increases Financial Aid to Victims of Crime

Just as the FTC paid out refunds to victims of an abusive, deceptive debt collection campaign, the New Hampshire legislature has passed a bill to improve financial assistance to the victims of certain crimes. Under UB 616, more funds will be funneled towards victims of crimes and prevent debt collectors from attempting to collect debts before a certain time.

The trends over the past week indicate a good level of justice for consumers across the country. As debt rises, debt collection practices have slid and the number of abusive or deceptive tactics have increased. Be sure to check back next week to see what is trending in debt collection.

Brent Vullings