Last month, the FTC produced a revealing document entitled, “The Structure and Practices of the Debt Buying Industry.” As the title suggests, the report details the ins and outs the debt buying business, from how they obtain consumer information to how they collect. The goal of the report is to understand the industry and to implement reforms accordingly. After all, it is stated that the FTC receives most of their complaints from consumers about debt collectors.


The Consumerist has created a very good summary on the report here: 8 Things We Learned From FTC Report On Debt-Buyers


Some interesting key facts about debt buying as outlined in the report (source:

  • Buyers paid an average of 4.0 cents per dollar of debt face value
  • Buyers typically received the information required for validation notices
  • Buyers also typically received additional information that could make validation notices more
    useful, but they usually did not provide it to consumers
  • Buyers rarely received dispute history
  • Buyers received few underlying documents about debts
  • Accuracy of information provided about debts at time of sale not guaranteed
  • Limitations were placed on debt buyer access to account documents


In short, it’s apparent that there are holes in the procedure which can lead to many inaccuracies in the debt collection process. If you feel you have been wrongfully collected on or have even been harassed by a debt collector, we can help. Our debt collection attorneys of Orange County can help; call us for your free consultation – you may even be entitled to monetary compensation; 949-200-8755.