The Consumer Financial Protection Bureau logged 30,000 consumer complaints last year about debt collectors, but only 521 ― 1.7% ― were related to auto debts, an agency spokesman told Auto Finance News.
Of all the complaints received, 35% were referred to other regulators, such as the Federal Trade Commission, the spokesman said.
The CFPB report, released yesterday, said consumers complain that they’re being hounded about debts they often don’t even owe. Top complaints also include debt collectors’ use of aggressive communication tactics and threats of illegal actions. In fact, debt collection is the CFPB’s largest source of monthly complaints.
Specifically, some of the auto-related complaints included allegations of abusive or profane language; threats by collectors to seize property; and too little information provided by collectors to verify debts to consumers.
CFPB started to compile consumer complaints about debt collection in its Consumer Response System back in July 2013. The bureau forwards the complaints to the named companies for review and response. So far, companies have responded to about 82% of the complaints sent in the required timeframe.
The FTC, which oversees the Fair Debt Collection Practices Act, compiles the CFPB’s information, plus complaints it receives directly from consumers and other federal and state agencies, in its Consumer Sentinel system. The FTC then makes the database available to federal and state law enforcement.
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