It’s no secret that debt collectors often attempt to collect debts in the wrong amount, or even from individuals who never incurred the debt. The Federal Trade Commission has sent a survey to nine of the largest debt collectors in the country to help determine what the rate of inaccuracy is in the collection of debts.
A U.S. agency charged with consumer protection has sent surveys to nine companies that buy 75 percent of U.S. consumer debt to try to determine whether they are working with accurate information.
Debt collectors frequently try to collect wrong amounts or contact the wrong consumer, the U.S. Federal Trade Commission said on Tuesday, adding that it wanted to determine if the companies buying the debt contributed to the problem.
“Many debts are purchased and resold several times over a period of years before all collection efforts finally cease,” the FTC said in a press release.
Debt collection companies typically buy bad debt from banks and other financial institutions at pennies on the dollar and then aggressively pursue repayment.
The industry has faced increased scrutiny from state regulators who have been trying to make it harder for debt collectors to make recoveries.
If you believe you have been mistakenly contacted by a debt collection agency, or the debt in question is inaccurate, you can exercise your legal rights under Texas Finance Code to stop collection attempts.