Activities to Combat Illegal Debt Collection Practices

In March 2018, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) reported on their 2017 activities to combat illegal debt collection practices.  The CFPB handled approximately 84,500 debt collection complaints, making it one of the most prevalent topics of complaints about consumer financial products or services.  The Bureau offered five sample letters that consumers may use when they interact with debt collectors.

The FTC resolved 10 cases against 42 defendants and obtained more than $64 million in judgements, focused on curbing egregious debt collection practices, including phantom departments, schools, non-profit organizations, banks, credit unions, other businesses and government agencies.  The agency logged more than 60 million views on its webpages, with its videos seen more than 581,000 times at YouTube.com/FTC, and its consumer blogs reaching 199,860 (English) and 50,480 (Spanish) email subscribers.

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Teaching Suggestions

• Ask students to review the major provisions of the Fair Debt Collection Practices Act.
• Let students debate the issue, “Can governmental agencies stop unlawful practices of the debt collection agencies that harm both consumers and legitimate business”.

Discussion Questions

1. Is it possible to live without using any form of consumer credit?
2. What can the governmental agencies do to protect the legal rights of all consumers in a manner that is efficient, effective, and accountable?