Complaints About Debt Collections Surge

Complaints about debt collection have jumped sharply in the last year, with federal data showing a dramatic rise in reports of aggressive or abusive collectors.

What’s happening

• Federal Trade Commission data indicates debt collection complaints rose about 200% per capita in 2025 versus the prior year, topping 400,000 consumer reports.​

• In one quarter of 2025 alone, the FTC logged roughly 140,000 collection-related complaints, up from about 44,000 in the same quarter a year earlier.​

• States with some of the highest complaint rates include Texas, Georgia, and Florida, with similar spikes reported in other parts of the country.

Why complaints are surging

• Rising consumer debt: Total U.S. household debt climbed to about 18.4 trillion dollars by mid‑2025, with credit card balances exceeding 1.2 trillion dollars and more accounts falling delinquent.​

• Post‑pandemic shift: Temporary pandemic-era pauses and relief programs ended, pushing more overdue accounts into collections and increasing call volume.

• Enforcement climate: Consumer advocates say weaker federal oversight of collectors has emboldened some firms to use more aggressive tactics.​

What people are complaining about

• Many complaints describe calls as harassing, fraudulent, or threatening, including repeated calls, hostile language, and illegal threats of arrest or wage garnishment.

• A leading issue is collectors trying to collect debts that consumers say they do not owe, sometimes involving “phantom” debts that do not exist or are already paid.

• Regulators have recently shut down phantom-debt schemes that took millions of dollars from consumers by demanding payment on bogus accounts.​

Key rights you have

Under federal law (the Fair Debt Collection Practices Act):

• You can demand validation: Within five days of first contact, a collector must send written details of the debt (amount, original creditor, and who now owns it).​

• You can dispute in writing: If you dispute the debt within 30 days in a letter, the collector must stop collecting until it verifies the debt.​

• You can tell them to stop contacting you: A written “cease communication” letter generally requires a collector to stop calling, except for limited notices.​

• Threats of jail, immediate lawsuits, or wage garnishment that misstate the law are often illegal and can be grounds for complaints or a lawsuit.​

What to do if you’re getting calls

• Do not pay immediately: First ask for the company’s name, address, phone number, and written validation of the debt; verify directly with the original creditor.​

• Keep records: Log dates, times, phone numbers, and what is said on each call; save voicemails and letters.​

• Report abuse: File complaints with the FTC (reportfraud.ftc.gov) and your state attorney general if you believe a collector is breaking the law or the debt is not yours.

• Get help: Nonprofit credit counselors and legal aid groups can help you sort out legitimate debts, dispute bogus ones, and consider options like repayment plans or bankruptcy.