The Federal Trade Commission (FTC) has required the nine biggest debt-buying companies in the U.S. to reveal how they buy and attempt to collect debt payments.
The nine companies are Unifund Corp, Arrow Financial Services LLC, B-Line LLC, Asta Funding Inc., Encore Capital Group Inc., eCast Settlement Corp., NCO Portfolio Management Inc., Sherman Financial Group LLC, and Portfolio Recovery Associates, L.L.C.
According to the FTC, the companies altogether purchase 75 percent of the consumer debt bought in the country.
The order of the commission came as part of its endeavors to investigate complaints of consumers regarding debt collectors who try to obtain payments from the wrong person or who attempt to collect inaccurate amounts.
The FTC order requires the businesses that received it to disclose information on how they handle consumer accounts, the data it sells with the debt and the software program it employs to trace borrowers.
The commission also requires details on how the debt collection agencies dealt with demands of payment that they made to consumers who contested the debt — specifically whether or not the debt buyers answered in writing or they merely re-sold contested accounts.
The commission would use the information they gather to establish a value on the debt-purchasing industry, which includes the amount that these businesses pay to obtain unpaid consumer accounts. Debt buyers normally pay pennies on the dollar for delinquent accounts.
The FTC is the country’s consumer protection agency, which receives complaints regarding identity theft, companies, business practices, and events of violence in the media.
The FTC enforces the Fair Debt Collection Practices Act (FDCPA). The FDCPA dictates how debt collectors should behave when collecting debt payments from consumers. Unfortunately, many consumers are not aware of their rights under the FDCPA.
- If you have been sued by a credit card provider, debt collection lawyer, or debt buyer, you do not have to resolve the lawsuit by dealing directly with them or follow their terms. Defend your rights with the help of a San Antonio Attorney.