Latest news with #debtcollection
BBC News
3 days ago
- Business
- BBC News
Council tax: households owe billions ahead of bill rise
Struggling households owe billions of pounds in unpaid council tax, but bills are expected to keep rising in the years figures show £6.6bn is owed to local authorities in England, with an extra £642m having been added to those arrears in the year to data from Scotland and Wales means the total cumulative amount owed in the three countries has hit more than £ have called for a more sympathetic approach to council tax debt collection, rather than the use of bailiffs. While the government is proposing a change in the rules over the way unpaid bills are chased, the Treasury is also assuming council tax will rise by 5% a year in the can raise council tax by up to this amount, although they can go above this cap if they hold a local referendum or get approval from central government.
The Sun
4 days ago
- Entertainment
- The Sun
I was a female debt collector and had to chase people for £1 – mortifying incident in man's flat made me quit
A FORMER debt collector has revealed the bizarre incident in a man's flat that led her to quit the profession. Lynne Cavanagh, 46, rounded up outstanding payments of as little as £1 from clients around Glasgow. 3 3 The mum of three, who has also worked jobs in private care and cleaning, said she "got to know" all her customers because she did the same rounds every week. She was always invited into people's homes - but thought nothing of it until one awkward visit. In a recent TikTok post (@lynnelxx), she said: "I used to do the debt collecting years ago. You'd go and you'd collect people's money every week. "It could be like a fiver or £1 or whatever. You give them money, you give them loans. "Everybody invites you in. You're never ever doing that at the door because people don't want people to know and hand out their money at doors and fill in slips and all that. "So you're always invited into people's houses, which I never ever thought as being a danger or weird until this scenario." She continued: "There was this one guy I used to go to all the time and he stayed in an upstairs flat. "He's either out the back sunbathing or he's arguing with the neighbours, there was always something. "But this one day I went to his door and he came to the door with a housecoat on and it was one of the satin things. It was strange." The house call only got more awkward when mortified Lynne realised what her client was watching on the telly. I'm in £15k worth of debt but STILL have TWO gardeners - people might judge me but they are an essential and a godsend And despite inviting her in to sit in the living room, the brazen gent didn't turn the TV off. "You can hear moaning and groaning, if you know what I mean?" Lynne cringed. "I can't even tell you. I just didn't want to even look anywhere. "He's still got his Pornhub channel on, but way back then, I don't even think that's what it was [called]. "And they're at it there, right? So there's a good few of them on the telly, and they're all screaming and moaning, andand I'm like 'f***, £4, you owe me, right?'. "He's blethering away, but as he's sitting down, his nightgown's sort of opening, you can see he's a bit excited. 3 "I literally was like 'oh, you need to turn that down, it's too noisy' and he's like 'oh, sorry, sorry, sorry, forgot that was on'." She continued: "I don't know if I was fearing for my life, but it was that kind of situation, you're thinking you just want out it very, very quickly, and you don't know how to get out it without causing offence." Lynne admits that the incident was "forgotten about like it didn't happen" by her next visit, but put doubts in her mind about her job. "You've no idea how much my heart was beating, and how the rest of my run that night just did not go that great, because I was just thinking 'f***'. "And then after that, I started thinking is it safe to go into people's houses? Because we just automatically walk in, and they know when we're coming." Not long after, Lynne's manager got a tip off that she was going to be ambushed while walking to one of her jobs. She said: "So then, after that, I sort of gave up the debt collecting, because I just thought, I don't know if this is that safe for me to do on my own." How to shift your credit card debt quickly By James Flanders, Consumer Reporter UK Finance reports that we spend a whopping £2 billion a month using our credit cards. While that little strip of plastic makes everyday spending easy peasy, it comes at a huge cost. According to The Money Charity, the average credit card debt sits at £2,485 per household or £1,312 per adult. And if you're stuck on a credit card with a high APR and only making the minimum repayments, you could be forking out hundreds of pounds extra in interest charges. For example, if you owe £1,312 on your credit card and are charged 24.8% APR. If you don't make any more transactions and pay £100 a month in repayments, you will pay off the card by September 2025 but at £207 in interest. However, by hunting around for a better deal elsewhere and switching to a balance transfer credit card with a lengthy interest-free period, you can save yourself £162. If the same person was accepted for a 28-month-long zero-interest credit card with a 3.4% balance transfer fee and made the same £100 repayments each month. They would pay off the debt sooner, in July 2025, and only fork out £45 towards the 3.4% balance transfer fee. Before taking out a new credit card or increasing the amount you borrow, it's vital to consider the consequences. You should only borrow money if you can afford to pay it back. It's always vital to ask yourself if you need to borrow before committing to a new credit card, personal loan or overdraft. If you use a credit card, I'd recommend that you always pay off your balance in full at the end of each statement period. Lenders have a responsibility to help customers who are in debt. If you're in a debt crisis, your first point of call should be your lender. They might help you out by offering you a reduced interest rate or a temporary payment holiday - so check in with your lender if you're struggling.
CBS News
4 days ago
- Business
- CBS News
6 illegal (but common) debt collection tactics to watch for
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. There are a few common but illegal tactics that debt collectors use, and it's important to recognize what those are to protect yourself (and your finances). Getty Images/iStockphoto Debt collection is a legitimate business — when done legally. But too often, debt collectors choose to push the boundaries, especially when they assume the person on the other end of the line isn't fully aware of their rights. That can lead to harassment, threats and violations of the protections put in place for borrowers. The problem has gotten so bad, in fact, that the Consumer Financial Protection Bureau (CFPB) receives more complaints about debt collection than almost any other financial issue. What makes this situation particularly frustrating is that many people don't realize when debt collectors are breaking the law. They assume that because they owe money, they have to put up with whatever treatment they receive, but that couldn't be further from the truth. The Fair Debt Collection Practices Act (FDCPA) sets clear boundaries on what collectors can and cannot do, and violations of these rules can result in serious penalties for the collection agency. So, if you're behind on payments or have debt in collections, it's essential to know what debt collectors can't do. Understanding these illegal tactics isn't just about protecting yourself. It's about recognizing when you might have grounds to fight back. Find out how to get more help with your debt today. 6 illegal (but common) debt collection tactics to watch for Here are some common debt collection violations to watch for — and what to do if they happen to you. Threatening arrest or jail time You can't be thrown in jail for unpaid credit card bills or other consumer debt, but that doesn't stop some debt collectors from threatening it. They might claim that you'll be arrested if you don't pay right away or say there's already a warrant out for your arrest. These threats are not only false, they're also illegal under the FDCPA. What to do: Stay calm and don't give in to the pressure. Ask for written verification of the debt and report the collector to the CFPB or your state attorney general's office. Speak to a debt relief expert about the strategies available to you now. Calling before 8 a.m. or after 9 p.m. Debt collectors are only allowed to contact you between 8 a.m. and 9 p.m. in your local time zone. However, some debt collectors ignore that rule, especially those operating from out-of-state or overseas. Remember, though, that these off-hours calls aren't just annoying. They're illegal. The FDCPA was designed to prevent harassment and repeated calls at odd hours can easily cross that line. What to do: Keep a call log with timestamps and file a complaint with the CFPB. You can also send the debt collector a written notice asking them to stop contacting you. Contacting your employer or family While debt collectors are allowed to call your workplace once to verify your employment, they cannot discuss your debt with your boss, coworkers or the human resources department. Similarly, they're not allowed to talk about your debt with friends or family members, except in very limited cases, like a spouse or legal guardian. Unfortunately, this is still a common intimidation tactic that many use. For example, debt collectors might claim they're investigating you or tell others that you're in legal trouble, all to pressure you into paying. What to do: Document any third-party communications by debt collectors and report it immediately. This type of communication is a clear violation of federal law. Misrepresenting the amount owed Debt collectors sometimes inflate what you owe by adding bogus fees, penalties or interest that wasn't part of the original debt agreement. Others may try to collect on debts that are already paid off or on accounts that were never yours to begin with. This practice is especially common with older debts that have been sold and resold multiple times, often with limited documentation. What to do: Always ask for a debt validation letter, which the debt collector is legally required to send within five days of first contact. If they can't prove the debt is real or that you owe the amount they say, you may not have to pay. Pretending to be law enforcement or an attorney Some debt collectors pose as police officers, court officials or lawyers to scare you into quick payment. They might send fake legal documents or call from numbers that appear official on caller ID. This is both deceptive and criminal. Impersonating a government or legal official to collect a debt can carry serious penalties for the debt collector, including fines and loss of licensure. What to do: Don't respond to threats. Instead, ask for identification and written proof of the debt. If they refuse or act aggressively, report them. Refusing to provide information about the debt If a debt collector calls and won't give you details like who they are, what company they represent or how much you supposedly owe, that's a major red flag. Under federal law, you have the right to know this information, and debt collectors must provide it. Vague or evasive answers often signal that the debt is illegitimate or that the collector knows their practices won't hold up under scrutiny. What to do: Never agree to make payments or share personal info until you receive written proof of the debt. You're entitled to it by law. The bottom line Not all debt collectors break the law — but many rely on fear, confusion or ignorance of your rights to get results. That's why it's so important to understand what collectors legally can and can't do. If you believe you're being harassed or misled, don't just put up with it. Take action. Keep records of all communication, file complaints with the right agencies and consider talking to a consumer protection attorney if the behavior doesn't stop. You have more power than you think — and the law is on your side.
Daily Mail
20-06-2025
- Business
- Daily Mail
States and cities where debt collection calls are surging
American households currently carry a record $18.2 trillion in debt, and delinquencies are rising. An unfortunate consequence is that unpleasant calls from debt collectors are also skyrocketing. Debt collection calls rose by more than 150 percent in the first quarter of the year compared to the same period last year, according to Federal Trade Commission (FTC) complaint data. Individuals may report debt collector calls to the FTC, the Consumer Financial Protection Bureau (CFPB) or their state's attorney general office. Americans living in Georgia have been the most inundated with these calls, with residents filing 80 complaints per 100,000 people, according to NumberBarn analysis . Atlanta was the worst hit city, with 6,500 complaints made for every 100,000 residents. Texas was the second worst hit state, with locals filing more than 18,000 complaints of debt collector calls - 62 for every 100,000 people. Experts claim the recent surge is down to both legitimate debt collectors ramping up efforts to claim back funds amid economic uncertainty , as well as scammers exploiting the situation by impersonating collectors. Dallas was the city flooded with the second most calls adjusted for population, followed by Miami. Although debt collection call complaints have been steadily rising for the last 10 years - averaging between 35,000 and 45,000 per quarter - the recent spike is notable. The biggest chunk of complaints are made by those aged 30 to 39, a group weighed down by more than half of the nation's student loan debt. This leaves Americans in that age bracket open to legitimate and fraudulent debt collection calls, experts warned. 'When it comes to debt collection, we're seeing a perfect storm right now,' Michael Boggiano, managing partner at Wealthcare Financial, told . 'The surge in complaints against collectors reflects both a rise in legitimate frustration and a rise in fraud.' The average American's debt is now $61,660, up $970 from a year ago, according to the New York Federal Reserve. That is more than four times the volume that were described as such in the same period of 2024. Experts from NumberBarn say that aggressive or threatening tactics could be a sign a call is a scam, as official debt collectors must follow certain regulations.
Daily Mail
20-06-2025
- Business
- Daily Mail
The states and cities where debt collection calls are surging
American households currently carry a record $18.2 trillion in debt, and delinquencies are rising. An unfortunate consequence is that unpleasant calls from debt collectors are also skyrocketing. Debt collection calls rose by more than 150 percent in the first quarter of the year compared to the same period last year, according to Federal Trade Commission (FTC) complaint data. Individuals may report debt collector calls to the FTC, the Consumer Financial Protection Bureau (CFPB) or their state's attorney general office. Americans living in Georgia have been the most inundated with these calls, with residents filing 80 complaints per 100,000 people, according to NumberBarn analysis. Atlanta was the worst hit city, with 6,500 complaints made for every 100,000 residents. Texas was the second worst hit state, with locals filing more than 18,000 complaints of debt collector calls - 62 for every 100,000 people. Experts claim the recent surge is down to both legitimate debt collectors ramping up efforts to claim back funds amid economic uncertainty, as well as scammers exploiting the situation by impersonating collectors. Dallas was the city flooded with the second most calls adjusted for population, followed by Miami. Although debt collection call complaints have been steadily rising for the last 10 years - averaging between 35,000 and 45,000 per quarter - the recent spike is notable. The biggest chunk of complaints are made by those aged 30 to 39, a group weighed down by more than half of the nation's student loan debt. This leaves Americans in that age bracket open to legitimate and fraudulent debt collection calls, experts warned. 'When it comes to debt collection, we're seeing a perfect storm right now,' Michael Boggiano, managing partner at Wealthcare Financial, told 'The surge in complaints against collectors reflects both a rise in legitimate frustration and a rise in fraud.' The average American's debt is now $61,660, up $970 from a year ago, according to the New York Federal Reserve. Delinquency is also rising on consumer debt, particularly on auto loans which now account for $1.6 trillion of debt. Michael Boggiano, managing partner at Wealthcare Financial, warned that scams are rising Miami residents have also been inundated with scam calls in the first quarter of the year The recent surge is down to both legitimate debt collectors ramping up efforts to claim back funds amid economic uncertainty, as well as scammers impersonating collectors Almost half of all the call complaints filed in the first quarter of the year were described as 'abusive, threatening or harassing.' That is more than four times the volume that were described as such in the same period of 2024. Experts from NumberBarn say that aggressive or threatening tactics could be a sign a call is a scam, as official debt collectors must follow certain regulations. Debt collectors are barred from using threat or profanity; from calling before 8am or after 9pm; from impersonating law enforcement or a government agency and from attempting to collect debts you do not actually owe. They must also identify themselves. If they evade questions about who their employer is, that could also be a sign the call is a scam.
