Debt Collection Calls Are Skyrocketing

The Clifton Heights, Delaware County, teacher and mom of two racked up more than $16,000 in debt on cards carrying 27% annual percentage rates.

“I’m getting all the kids’ things, clothes, some toys, groceries,” she said. “How easy – just put it on the card.”

Collector calls surging

As credit card debt in the U.S. nears a record $1.2 trillion, debt collector calls have more than doubled year-over-year.

According to FTC complaint data analyzed by NumberBarn, a phone number management platform, consumers reported more than 112,000 debt collection calls in the first quarter of this year. More than 7,000 of the complaints came from consumers in the tri-state area.

Nearly half of reported calls were flagged as being abusive, harassing or threatening, according to the analysis.

Thomas Nitzsche, with the nonprofit credit counseling agency Money Management International, says you have rights as a consumer if you start receiving calls from debt collectors. For example, you can request a collector stop calling you at work or during a time that’s inconvenient.

“Collectors have to operate under the Fair Debt Collection Practices Act, which essentially just means that you can’t be called in the middle of the night, they can’t just show up at your workplace or in your doorstep, they can’t threaten you with jail time,” he said. “They can’t harass you.”

Violations of the  Fair Debt Collection Practices Act (FDCPA) can result in serious penalties for the collection agency. You can report abusive, threatening, or harassing calls to the FTC at reportfraud.ftc.gov.

Dealing with debt collection calls

If a debt collector starts calling you, it might make sense to try to deal with it as quickly as possible, but Nitzsche says it’s important not to act until you can verify the debt.

A debt collector must prove that the debt is yours and that the amount is accurate. Legitimate collectors are required to provide proof in writing if you request it.

Never confirm your personal information with a debt collector until you know it’s legitimate. Scammers often purchase information about old debt for very cheap and try to use that to collect from consumers who don’t know their rights, Nitzsche warns.

Confirm the age of the debt. In each state, there is a time limit in which a debt collector can successfully sue to collect debt. It also depends on the type of debt. For most loans, the limit in Pennsylvania is four years, in New Jersey it’s six years and in Delaware, it’s three years.

Determine your best option to pay it off. Working out a settlement to repay some of the debt might be possible. Or you can consider working with a credit counseling agency on a debt management plan.

Fisher went the credit counseling route. She says Money Management International consolidated her debt and negotiated her interest rate from nearly 30% down to 10% putting her on track to pay it off within a few years.

“There’s steps now,” she said. “I can see that amount going down, which is definitely a good feeling.”

The Financial Counseling Association of America, a national association representing financial counseling companies, can help you find a certified credit counselor. You can also seek help through the National Foundation for Credit Counseling, the nation’s largest nonprofit financial counseling organization.

Do you have a money question, a consumer issue, or a scam story you want to share? Email InYourCorner@cbs.com.