Debt collector horror stories abound: There are threats to dig up the dead relatives of those who couldn’t pay their funeral bills, promises to imprison debtors or take their children into custody–even warnings that pets will be killed.
As part of an ongoing crackdown, the U.S. Federal Trade Commission shut down a Texas-based debt collector, Goldman Schwartz, last week for violating the Fair Debt Collection Practices Act by allegedly using deceptive and abusive scare tactics to force people to pay their payday loan debts.
In other cases, state officials or private consumer attorneys are accusing debt collectors of harassment.
Many states have their own rules governing debt collector practices as well.
Story by Blake Ellis for CNN Money.
- ACE Cash Express Fined For Illegal Debt Collection Tactics
- Progress on Predatory Lending
- Consumer Financial Protection Bureau: Consumers Report Being Hounded About Debt Not Owed
- FTC Brings First Case Alleging Text Messages Were Used In Illegal Debt Collection Scheme
- At the FTC’s Request, Court Halts Collection of Allegedly Fake Payday Debts
- Ct Officials Warn Of Debt Collection Scams