8 Things We Learned From The FTC Report On Debt Buyers
Thursday, January 31, 2013 - 10:10 AM
In spite of the many rules imposed on the debt collection industry, it still generates, by far, the largest number of complaints to the Federal Trade Commission each year. That’s why the agency recently completed a lengthy investigation into debt-buyers and why they do such a bad job.
Specifically, the FTC wanted to know why debt-buyers, the companies that snatch up old debt from other companies for pennies on the dollar, seem to constantly be contacting the wrong people and/or using incorrect information about the debt.
You can read the entire 162-page PDF here, but we’ve pulled out the following tidbits we found particularly interesting:
1. Debt-Buyers Only Pay About $.04 Per Dollar On The Accounts They Buy. Ever wonder why a debt-collection company might make endless calls to someone who only owes $15?