FTC pays $4.8 million to victims of debt collection

The Federal Trade Commission (FTC) reimbursed more than $4.8 million to victims of illegal debt collection practices last year, the agency said in a Friday, April 15 press release after releasing a report .

In the report — an annual summary of activities compiled for the Consumer Financial Protection Bureau (CFPB) for its own report to Congress — the FTC noted several actions taken against debt collections.

These include resolving a trio of cases under the Federal Debt Collection Practices Act (FDCPA) against 17 defendants and enjoining the 17 companies and individuals “who have engaged in serious and repeated violations of law to work in debt collection again,” the statement said.

In addition, the FTC said in the statement that it also filed amended complaints in two enforcement actions alleging illegal debt collection tactics against small businesses and sent a joint letter with the CFPB to the largest owners of the countries reminding them of their obligations under the FTC Act and the Fair Debt Collection Practices Act.

The report also highlights that the Supreme Court’s 2021 decision in AMG Capital Management v. FTC has made it significantly more difficult for the Commission to recover funds fraudulently obtained from consumers by individuals or businesses.

Read more: Supreme Court ruling limits FTC’s scope on monetary rewards

The FTC said in the statement that it has asked Congress to amend the FTC law to restore its ability to provide victims with monetary relief in these cases.

While debt collection accounts for several complaints handled by the CFPB, debt collectors are far from the biggest challenge facing the office these days. As PYMNTS reported earlier this week, 70% of complaints the agency received last year were about credit or consumer reporting issues.

See more : 70% of complaints filed with the CFPB relate to credit or consumer reports

Last year, the CFPB released its “Consumer Credit Trends: Disputes on Consumer Credit Reports” report, which found that consumers in predominantly Black and Hispanic neighborhoods, as well as younger consumers and those with low credit scores , were much more likely to have disputes. appear on their credit reports than other consumers.

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