Debt Collection Industry On Notice About Hounding Consumers
By Steve Tawa
PHILADELPHIA (CBS) - Since July, the Consumer Financial Protection Bureau began taking consumer complaints about the debt collection industry, which reportedly now makes up about a third of the Bureau's daily squawk volume.
Consumer complaints about abusive tactics, like harassing phone calls, are prompting the government watchdog to look into new rules and regulations.
The director of the Mayor's Office of Consumer Affairs at Philadelphia City Hall, Lance Haver, says debt collectors should be held accountable:
"If a collector calls you, there should be some transparency," he said. "You should know who is calling you, and have a way of identifying them, so if a collector is violating the law, there are repercussions."
Haver says there is an expiration date on collecting debts:
"We would want to make sure that debt collectors are not attempting to collect debts that are past the statute of limitations."
The statute of limitations is four-years in Pennsylvania and six-years in New Jersey, but the past due debt can still be recorded on your credit report.
