The Federal Trade Commission (FTC) recently submitted its annual summary of consumer protection activities in the debt collection sector to the Consumer Financial Protection Bureau (CFPB). The CFPB will use this summary in its annual report to Congress, outlining the activities of both agencies who share law enforcement responsibilities in this area.
In the summary, the FTC underscores its comprehensive efforts to safeguard consumers and small businesses within the debt collection market. These efforts include:
- Litigating two cases against debt collection operations alleged to have used a range of illegal tactics to intimidate small businesses over supposed debts.
- Issuing over $1.27 million in refunds to consumers impacted by unlawful debt collection practices.
- Halting collections of millions of dollars in debt that originated from illegal financing and sales practices.
- Providing educational materials to tens of millions of people in both English and Spanish. These materials inform individuals about their rights and educate debt collectors about their responsibilities under the Fair Debt Collection Practices Act (FDCPA) and FTC Act.
The FTC’s commitment to protecting consumers and small businesses from unscrupulous debt collection practices is evident in its multifaceted approach, which combines litigation, refunds, halting collections, and widespread education.
Naomi Takagi, a staff attorney in the FTC’s Bureau of Consumer Protection, is leading the agency’s efforts in this matter. Through her leadership and the collective work of the FTC, the agency continues to uphold its mission to protect consumers in the debt collection arena.
The CFPB’s annual report provides a detailed account of the joint activities of the FTC and CFPB, offering Congress valuable insights into the operations and achievements of both agencies in the debt collection sector.
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