Collectors increasingly are hounding consumers for unsubstantiated debt, according to a report issued Thursday by Consumers Union and the East Bay Community Law Center.
The groups are calling on state lawmakers and federal regulators to enact new restrictions on debt buying and to put in place other safeguards for consumers. As more debt is bought and sold, debt collectors are filing more lawsuits against consumers, often without proof to back up their claims, critics say. They say the problem is aggravated when consumers do not receive timely notice that they have been sued, or when the debt is so old that the consumer does not have good records to show whether the debt is owed or the amount claimed is correct.
ACA International, a trade group for collectors, responded in a statement that it "finds areas for both agreement and disagreement in regard to the authors' proposed policy changes. We agree that harassment, threats and other illegal activity against consumers are unacceptable and violators must be held accountable. Our members work very hard to ensure consumers are treated respectfully." But it added that "the collection of duly owed debt reinforces an important American cultural norm."
