Inside America’s Debt Collection Industry
Photo Illustration by Spencer Platt/Getty Images
A new study says more than 35 percent of Americans have debt that has been reported to a collections agency. Even as credit card debt continues to decline, the share of Americans facing collectors’ calls hasn’t budged. The U.S. Consumer Financial Protection Bureau is taking a hard look at the collections industry, and is poised to issue game-changing new regulations. Amid allegations that debt collections claims are frequently incorrect or improperly managed, firms that file lawsuits to collect money on unpaid bills are now in the hot seat. We take a look inside America’s debt collection industry.
economics writer, The Associated Press.
director of financial regulation studies, the Cato Institute.
consumer lawyer; adjunct professor at the University of Maryland Carey School of Law.
of counsel, the National Consumer Law Center.