BBB Chapter Releases Report on Debt Collectors

The St. Louis office of the Better Business Bureau in late December released a report on the growing number of complaints about debt collection practices. The study also takes aim at the growing prevalence of debt buying and legal collections.

The report, “They Deal in Billions:  A BBB Study of the Debt Collection Industry, Its Soaring Growth and Problems for Consumers,” was officially released December 27.  The bulk of the report is an examination of the growing number of complaints against collectors and creditors, principally tied to the growth of the debt purchasing sector and the ARM industry’s use of the court system to collect debts.

But the study also makes some useful recommendations to policymakers, consumers, and businesses that use the services of debt collection agencies. The report’s author reiterates the need for Fair Debt Collection Practices Act (FDCPA) reform at the federal level and suggests that businesses take a more proactive role in policing the agencies they engage. It also suggests that Missouri adopt its own version of the FDCPA, much like other states.

The study notes that, “The BBB believes that consumers should pay their rightful debts and that creditors have a right to take action to collect those debts. But it’s equally as important that those trying to collect debts abide by laws and ethical practices.”

View the entire report on the BBB web site.