Mixed View of Industry by FTC Chief at Workshop

Editor’s Note: insideARM.com Editor-in-Chief Burney Simpson is at the FTC’s Debt Collection workshop in Washington, DC. This is the first live update from the event.

The number of consumer complaints on collection agency practices to the Federal Trade Commission are on a pace this year to surpass the nearly 70,000 generated in 2006, Deborah P. Majoras, chairman of the FTC, said during her opening remarks today at the agency’s workshop on the collections industry.

Additionally, the collection-related complaints are a greater percentage of the total number of consumer complaints the agency receives on all businesses, said Majoras.

“Not all these complaints are violations, but this warrants a hard look at the industry,” said Majoras.

The two-day workshop “Collecting Consumer Debts: The Challenge of Change” is designed to review the collection industry, the 30-year old FDCPA rule that regulates the business, the impact of technology, and other topics.

Majoras spoke to a standing room only crowd of industry heavyweights that were appearing on panels, mingling with colleagues and competitors, and watching the action to determine possible next steps the FTC may take. Majoras did not tip the agency’s hand during her speech but welcomed attendees with an overview of the business and an explanantion of the reason for holding the workshop.

Majoras said the FTC encourages the industry to practice greater self regulation with leaders setting standards and educating members on the standards.

Majoras gave kudos to the board of ACA International for toughening its ethics platform at its annual convention last summer. “That is an encouraging development,” said Majoras.

Majoras also announced that the FTC will leave open until November 11 the public comment section on its Web site regarding the debt industry.