New York Times Goes After Debt Collectors

Cause and effect seems to have escaped the New York Times in its piece on ?rough playing? debt collectors.

With an economy that is anything but stable, due in no small part to schizophrenic interest rates, inflated housing markets, and increased energy costs, the rise in consumer debt levels has been pretty astounding to industry watchers and analysts. Along with this increase in consumer debt comes an increase in consumer debt collection. Cue the Ennio Morricone music and black hats.

According to the Times?s article, the Federal Trade Commission has received 66,627 complaints against third-party debt collectors last year ? more than against any other industry, and nearly six times the number in 1999. What the article ? or the FTC ? fail to do, however, is further break down those numbers into valid complaints of consumers truly illegally badgered by debt collectors and invalid complaints from consumers who would rather not be fiscally responsible for their debt.

Also, the article is strong on language against the debt collection industry, but provides little balance in its story. For instance, this quote from Peggy L. Twohig, who directs the FTC’s Division of Financial Practices: ?We’re very concerned about the increase in complaints about debt collection, and we are stepping up our enforcement against the debt collection industry.? The article also interviews only folks who fit the profile of the wronged consumer, and fails to include any comment on the appearance of professional debtors.

You can read the full Times article at An Outcry Rises as Debt Collectors Play Rough.