FTC Reports Jump in Debt Collection Complaints

The Federal Trade Commission this week released its annual report of consumer complaints filed with the agency for 2009. Identity theft once again topped the list, with complaints about debt collection coming in second.

The FTC said that their Identity Theft category accounted for 21 percent of all consumer complaints in 2009, or 278,078 individual filings. Third Party and Creditor Debt Collection accounted for 9 percent of all complaints, or 119,549 filed.

While debt collection complaints accounted for 9 percent of all complaints in 2008 as well, there was a significant jump in the total number of complaints filed in 2009, especially against creditors.

The FTC broke out the debt collection complaint numbers into charges against creditors and third party agencies. In 2009, complaints against creditor collection activity increased 20.7 percent to 32,182. Complaints against third party collectors grew 11.4 percent to 88,263.

Complaints in the category of Credit Cards saw the largest increase, with a 240 percent increase to 45,203 in 2009. Debt management and credit counseling also saw complaints double, from 6,758 in 2008 to 13,401 in 2009.

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