From today's FTC press release:
The Federal Trade Commission told a U.S. Senate subcommittee that it continues to crack down on unlawful debt collection practices through an active program of vigorous law enforcement, education and public outreach, and research and policy initiatives.
Testifying on behalf of the FTC before the Senate Committee on Banking, Housing, and Urban Affairs, Subcommittee on Financial Institutions and Consumer Protection, James Reilly Dolan, Acting Associate Director for the FTC’s Division of Financial Practices, said that challenging unlawful debt collection practices continues to be one of the FTC’s highest priorities. Dolan noted that the FTC receives more complaints about debt collection than any other single industry, and that while lawful debt collection helps keep credit more readily available and affordable, unlawful debt collection victimizes consumers and places law-abiding collectors at an unfair competitive disadvantage.
The testimony highlighted some of the FTC’s recent work to ensure that
debt collectors comply with the Fair Debt Collection Practices Act
(“FDCPA”) and FTC Act.
It appears the argument over debt collections practices relates more strongly to competitive advantages than consumer rights. In a consumer economy driven by debt consumption capitalists now control the economy and all but eradicate consumer rights. Even government student loans are collected by private collection agencies without consumer protections intact. In a merchant economy debtors prison returns.