Tag: Consumer Complaints

Report Summary: The most reported abusive and deceptive debt collection companies

The Alliance for a Just Society is an organization dedicated to addressing economic, racial and social inequalities. This month, the group published an extensive research study, profiling the companies with the most complaints filed with the Consumer Financial Protection Bureau (CFPB) for debt collection complaints. Federal law requires third party debt collectors to follow certain strict guidelines controlling how they are allowed to collect debts, and our article, Consumer protection overview of the Fair Debt Collection Practices Act (FDCPA), published on the Zamparo Law Group, Consumer Protection Blog explains the law in detail.

Some of the common complaints about debt collectors include: (1) Continued attempts at collecting debts not actually owed; (2) Improper communication tactics; (3) Disclosure of verification of the debt; (4) False statements or representations about debts; (5) Improper contact or sharing of consumer information; and (6) Threatening or taking illegal actions against individuals.

When a debt collector violates the FDCPA, our law firm can help clients enforce the law and seek a court’s award of actual damages suffered, statutory damages and attorney’s fees. Many people assume the aggressive debt collectors make significant money (a $13 billion industry in the U.S.[i]) using abusive tactics, and they may consider it a cost of doing business, to sustain lawsuits and judgments entered against them in Federal court. To help stop these unethical collection companies, we should learn and be aware of how they violate the law, and share this information with other consumers who may be victims of abusive and deceptive collection practices.

Most common complaints against debt collectors
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The following summary highlights and lists four of the worst offenders, identified by the Alliance for a Just Society in their January 2016 report, Unfair Deceptive and Abusive Debt Collectors Profit from Aggressive Tactics. Notice in the review below, the most common consumer complaints are the continued attempts at collecting debts not owed.

  1. Encore Capital Group, Inc.[ii]

The CFPB received more than twice the complaints about the Encore Capital Group than any other debt collection company, totaling more than 6 percent of all the debt collections complaints in the CFPB database. Between July 7, 2013 and August 7, 2015, the CFPB received 4,684 consumer complaints. Encore is the second-largest debt collector, pursing collections of 7.5 percent of the debts in the U.S.; their President and CEO’s 2014 executive compensation was $5,190,334.

The three most common issues raised by consumers were: (1) Continued attempts to collect debt not owed; (2) Disclosure verification of debt; and (3) Communication tactics.

Example of a consumer complaint: “I have been receiving numerous calls from [Encore subsidiary] Midland Credit. They are looking for someone else, not me, for over a month. Sometimes it is automated and they just ring the phone; I called them back XXXX times and asked them to take off my number — calls keep coming. Today I spoke to a person that said he would remove it from the automated calls and now the manual calls have begun.”

  1. PRA Group, Inc.[iii]

The CFPB received 2,216 complaints about the PRA Group between July 7, 2013 and August 7, 2015. PRA is the third-largest debt collector, pursing collections of 6.9 percent of the debts in the U.S.; their Chairman of the Board, President and CEO’s 2014 executive compensation was $5,606,441.

The three most common issues raised by consumers were: (1) Continued attempts to collect debt not owed; (2) Communication tactics; and (3) Disclosure verification of debt.

Example of a consumer complaint: “My XXXX died owing a credit card debt. The debt collectors say I now owe the debt. My name is not on the application for credit nor have I benefited from the credit card. The debt collectors reported it to the credit reporting corps. And it appears on my credit report as a debt I failed to pay and fraud. I am applying to refinance my home and I am being denied because of the report. I have no other blemishes on my credit report. I can’t sleep with the fear of losing my home.”

  1. Enhanced Recovery Company, LLC.[iv]

The CFPB received 2,016 complaints about the Enhanced Recovery Company between July 7, 2013 and August 7, 2015. Enhanced Recovery pursues collections of 2.7 percent of the debts in the U.S.; their President and CEO’s 2014 executive compensation is not publicly available.

The three most common issues raised by consumers were: (1) Continued attempts to collect debt not owed; (2) Disclosure verification of debt; and (3) False statements or representation.

Example of a consumer complaint: “I received many calls from a debt collector, to the point where I had to change my phone number. This is a debt that is from 6+ years ago, which I don’t have proof that I paid but in fact did pay. They have gone ahead and reported it in my credit reports. I tried calling XXXX last time in an effort to solve this issue and was threatened that if I did not pay they would contact my XXXX and contact my employer (which they repeatedly called and that’s how we found out it was a false collection agency).”

  1. Citigroup, Inc.[v]

The CFPB received 1,553 complaints about the Citigroup between July 7, 2013 and August 7, 2015. Citigroup’s top paid executive, the Co-President’s 2014 executive compensation was $15,892,220.

The three most common issues raised by consumers were: (1) Continued attempts to collect debt not owed; (2) Communication tactics; and (3) Disclosure verification of debt.

Example of a consumer complaint: “Letter sent to me pertaining to my DEAD husband’s account. My husband died on XXXX XXXX, 1991 (almost XXXX years ago). I believe the account was paid off, but I might be wrong. But I do believe there is a statute of limitations with debt collections. I would consider XXXX years within that limit. Also, it was sent to my current address that has never been associated with my dead husband at all. I am not listed on this account at all.”

The remaining debt buyers and collectors on the Alliance for a Just Society list[vi] are:

  1. Expert Global Solutions.
  2. Resurgent Capital Services L.P.
  3. Capital One Financial Corp.
  4. Synchrony Financial.
  5. Convergent Resources, Inc.
  6. JPMorgan Chase & Co.
  7. Allied Interstate LLC.
  8. Bank of America Corporation.
  9. Navient Corp.
  10. Dynamic Recovery Solutions, LLC.
  11. Wells Fargo.

If you are experiencing similar complaints about these or any other debt collector, the Zamparo Law Group can help protect you and your consumer rights.

Zamparo ImageThe Zamparo Law Group, P.C. is a consumer protection law and litigation firm, representing consumer plaintiffs harmed by debt collectors violating the FDCPA and other similar federal and state laws. Zamparo Law Group in the northwest suburbs of Chicago sues and wins against the collection companies who refuse to follow the law and use illegal tactics to force consumers to pay the debts they are hired to collect.

To learn more about consumer protection law and the Zamparo Law Group, please visit the firm’s website. You may also ask for a free case review. The Zamparo Law Group is connected on social media, please follow us and share our resources we share on our FacebookTwitter and LinkedIn pages. You may call the Zamparo Law Group with any questions by dialing (224) 875-3202.

[i]Fair Debt Collection Practices Act: CFPB Annual Report 2015.” Consumer Financial Protection Bureau, Mar. 2015, p. 7.

[ii] See the Unfair Deceptive and Abusive Debt Collectors Profit from Aggressive Tactics (hereinafter “Consumer Complaints Profile Report”) at page 10.

[iii] Consumer Complaints Profile Report at page 12.

[iv] Consumer Complaints Profile Report at page 14.

[v] Consumer Complaints Profile Report at page 16.

[vi] Alliance for a Just Society, Unfair Deceptive and Abusive Debt Collectors Profit from Aggressive Tactics, Jan. 2016.

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