FTC Targets Debt Buyer's Illegal and Abusive Collection Practices

PITTSBURGH, PA, September 24, 2012 (Press-News.org) Residents of Pennsylvania are protected by law from being harassed by debt collectors. The Federal Trade Commission (FTC) recently settled a lawsuit with a major debt buyer over the debt buyer's illegal and abusive debt collection practices. The FTC alleged in its lawsuit that the company violated the Fair Debt Collection Practices Act, the Fair Credit Reporting Act and the Federal Trade Commission Act. The debt buyer agreed through settling the case to take steps to help consumers while the economy recovers.

A debt collector buys debt from other companies after it is more than a year old. Once a debt passes the statute of limitations, however, state laws prohibit debt holders from suing consumers for these old, unpaid debts. The statute of limitations on a debt varies by state.

Once a consumer makes a payment on an expired debt, the debt becomes "live" again and the debt holder can sue on the debt. The FTC accused the debt buyer of misrepresenting the facts to consumers on their debt to get the consumer to make a payment on a debt so that the debt holder could sue.

Under the recent settlement, the collection company agreed to properly inform consumers if their debt has passed the statute of limitations and expired. In cases where a consumer disputes a debt, the debt buyer agreed to conduct reasonable investigations. If the company knows information is missing about a debt or is inaccurate, it is prohibited under the settlement from trying to collect on it. If the company discloses a consumer's debt to a credit reporting agency, it must inform the consumer.

The settlement also prohibits the company and its employees from using harassment and other abusive tactics such as threatening to sue or providing misleading information in their efforts to collect debts from consumers. The company cannot harass third parties or inform third parties of a debt. If you believe you have been a victim of harassing or unfair debt collection practices, contact a qualified consumer protection attorney to assess your case.

If you are being harassed by an aggressive creditor or debt collector, you can take action. The first step is getting in touch with an attorney at The Law Offices of Kenneth Hiller, PLLC. For your free initial consultation, call 716-213-6378 or toll free 888-322-9399.

Attorney Kenneth Hiller
The Law Offices of Kenneth Hiller, PLLC,
301 Grant Street
Pittsburgh, PA
United States 15219
Voice: 888-322-9399
Website: http://www.kennethhillerlaw.com