The Role Third-Party Debt Collection Plays in the US Economy #2
Some people allege that third-party debt collectors target the economically insecure and low-income households. Many consumer complaints are lobbied against the industry. Researchers note that debt-collection is regulated by both the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC).
While it may seem that there are many complaints against debt-collection, the industry itself sees over a billion consumer contacts each year, and when counted against the 30 million debts collected annually, only a very small fraction of consumers will register a formal complaint. This series looks at how debt-collection affects the US economy, in particular how debt collection compliments credit and lending industries and promotes positive behavior from creditors. We also look at how debt collection supports consumers as it creates an environment in which lenders are able to offer affordable credit to consumers.