Shocking Facts about Debt Collection | McCarthy Law PLC
February 11, 2014

Shocking Facts about Debt Collection

The Consumer Financial Protection Bureau (CFPB) issued a request for public comment on debt collection strategies. Their request can be found here:

What’s really interesting is that in the request for public comment, the CFPB gives several shocking debt collection industry facts. For example:

When surveyed in 2011, debt collectors most frequently sought to recover on medical and other health-related debts. In fact, debt collectors were over 15% more likely to collect on a medical debt than a credit card.

In 2010, there were over 4,000 third-party debt collectors that employed more than 140,000 people. These firms reported revenues of $11.7 billion that year.  Collection law firms reported $2.4 billion in collection revenue in 2011.

The Federal Trade Commission issued a debt buyer report in 2013 which found that debt buyers did not verify almost 50% of disputed debts — failing to comply with their obligations under the law.

Read the full report here:

At McCarthy Law PLC, we strongly believe we need consumer advocacy that rivals the collection efforts that are occurring and growing at a substantial pace in the United States. We hope to continue to defend consumer rights and help every consumer get on a secure financial path.


Get More Information