Every year debt collection related complaints at the Federal Trade Commission (FTC) are on an increase. The Fair Debt Collection Practices Act (FDCPA) prohibits deceptive, unfair, and abusive practices by third-party collectors. The FDCPA requires the FTC to report on the level of industry compliance with the law. Although the FTC took significant steps in 2010 to curtail illegal debt collection practices. The largest complaints from consumers in 2010 have been against debt collectors. Complaints about third-party debt collectors and in-house collectors in 2010 together totaled 140,036 complaints and accounted for 27% of all complaints the FTC received. This is about 4.3% more than the complaints received in 2009. Under the FDCPA, debt collectors may not harass consumers to try to collect on a debt.17 In 2010, 49.7% of FDCPA complaints the FTC received, or 54,147 complaints, claimed that collectors harassed the complainants by calling repeatedly or continuously. This was the most frequent law violation about which consumers complained during 2010, as it was in 2009, when 41,063 FDCPA complaints, representing 46.5% of FDCPA complaints, stated that collectors harassed them by calling repeatedly or continuously. (Source: FTC Annual report, 2011: FDCPA) For complaints against debt collectors, the FDCPA enforces actions begin with investigations of debt collectors identified through complaints and other sources. If an investigation revealahas FDCPA violations, the FTC can file a suit seeking relief. The FTC can also request the department of justice to file a suit in federal court on behalf of the FTC, seeking a civil penalty and other monetary relief that would prohibit debt colecctors from continuing to violate the FDCPA. The FTC has been aggressive in enforcing several law enforcement strategies. The FTC’s debt collection program has a three pronged approach with regards to vigorous law enforcement consumer and industry education efforts and research and policy initiatives. It has become important now to upgrade the FDCPA provisions to accommodate the present progress. The FDCPA must also look at enforcing stricter guidelines and penalties for law violations to ensure fair collection process. The shift in times definitely has necessitated a change in guidelines of the FDCPA. Going by the times, the Federal Trade Commission (FTC) which enforces the FDCPA should further make stringent guidelines to the already existing ones to accommodate the latest in society. The FTC has been aggressive in enforcing several law enforcement strategies. The FTC’s debt collection program has a three pronged approach with regards to vigorous law enforcement consumer and industry education efforts and research and policy initiatives. It has become important now to upgrade the FDCPA provisions to accommodate the present progress. The FDCPA must also look at enforcing stricter guidelines and penalties for law violations to ensure fair collection process. The shift in times definitely has necessitated a change in guidelines of the FDCPA. Going by the times, the Federal Trade Commission (FTC) which enforces the FDCPA should further make stringent guidelines to the already existing ones to accommodate the latest in society.
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