Thankfully, the Federal Trade Commission has implemented several consumer protection programs. The Fair Debt Collection Practices Act was enacted to inform consumers of their legal rights and to provide a method for reporting fraudulent or unprofessional debt collection practices.
Lawsuits Rise
The FTC has observed a significant increase in the number of complaints against debt collectors and lenders, which has led to an increase in the number of lawsuits filed against these businesses. In September of this year, over 800 lawsuits were filed alleging violations of the FDCPA. Nearly 700 of these lawsuits involved distinct companies. This means that 700 different debt collection companies or lenders are currently being prosecuted for unethical debt collection practices.
Consumer Security
The Federal Trade Commission's mission has always included consumer protection. In the same way that these lawsuits will keep these unprofessional businesses in court for months, the FTC is likely to monitor and regulate these businesses for many years. The FTC has been assiduously working to increase regulations of businesses engaging in abusive or fraudulent practices, while also focusing on consumer education.
As a consumer, it is essential to understand your rights regarding debt collection. Every consumer must first understand that they have the option to settle their debts directly with their lender. Although a third-party debt collector may insist that the debt be repaid through their services, debtors retain the right to terminate communication with the third-party at any time and manage debts directly with the creditor or lender. In fact, submitting a written request to cease communication to the third party collector can stop collection efforts, and if collection efforts continue despite the request, the debtor has the right to pursue further action against the debt collector.
Second, consumers should be aware that they retain the right to access their account records, including any notifications of debt delinquency or settlement agreements. Anyone in debt settlement negotiations should obtain written copies of the account status, ledgers of any late fees or charges, and an official copy of the settlement agreement. Any lender who attempts to conceal information or refuses to provide written documentation should be reported to the Federal Trade Commission.
" - https://www.affordablecebu.com/
