Debt collection complaints spiking
Consumer credit card balances top $1.2T in Q2
By: denial de Vise
USA Today
..... Complaints about aggressive debt collection have skyrocketed in recent months, federal data shows, a sing that more Americans are falling behind on credit cards and medical bills.
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The rise in debt-collection complaints also suggests debt collectors may feel emboldened, some consumer advocates may, by a presidential administration hat has gutted the federal government's consumer watchdog effort.
..... The Federal Trade Commission logged more than 140,000 debt collection complaints in the second quarter of 2025, up from about 44,000 in the same period last year. [2024] Complaints are most common in Georgia, Texas and Florida.
..... "I think we're just seeing more people fall into debt and then struggling with collections," said Thomas Nitzsche, a financial educator at the credit counseling nonprofit Money Management International.
..... Household debt in America reached $18.4 trillion in the second quarter of 2025, up form $14.3 trillion at the same time in 2020. Credit card debt surpassed $1.2 trillion in the second quarter, up from about $800 billion at the same time five years ago.
..... The delinquency rate on consumer loans stood at 2.8% in the second quarter, tis highest level since 2012.
..... "Americans owe more debt than at any point in history," said Erin Witte, director of consume protection at the nonprofit Consumer Federation of America.
Top debt collector complaints
..... Debt collectors generally descend after a creditor has given up sending bills and resorts to contacting the consumer by phone, Some creditors use in-house debt collectors. Others sell delinquent accounts to debt-collection companies.
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Some debt-collection companies tactics are unethical, even illegal. Here are the top debt-collection complaints, according to an analysis of federal data by the national Consumer Law Center and Consumer Fed ration of America:
* Attempted to collect a debt that wasn't owned *39.6%)
* Problems with write notification about debt (20.5%)
* False statements or representations (9.9%)
* Abusive communications tactics (7.9%)
* Took or threatened negative actions (7.5%)
..... Overwhelmingly, the most common complaint over time has been attempting to collect a debt that's not owed," said April Kuehnhoff, a senior attorney at the National Consumer Law Center.
..... Debt collectors take every complaint seriously, according to ACA International, a trade group that represents collection agencies.
..... "Two-way communication between a consumer and the collection agent is the best way to learn about options to successfully resolve a debt," the group said in a statement.
..... The trade group noted that the FTC database includes complaints that are actually inquiries, asking, for example, whether insurance might cover a debt.
..... Debt collection slowed during the COVID-19 pandemic, when some creditors offered debt forgiveness and paused collection efforts. Federal stimulus payments helped consumers pay down debts and boost savings.
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As the pandemic faded, the debt collection industry road back, along with the attendant complaints.
..... According to FTC data, complaints reached a law ebb of about 22,000 in the final quarter of 2022. complaints rose to 45,000 in the first quarter of 2024, and to 137,000 in the first quart of 2025.
Debt collection lawsuits surging
..... In a related trend, state courts are seeing a spike in debt collection lawsuit. Court filings surged in 2023 and 2024, according to a September 2 [2025] report from the Pew Charitable Trusts based on data from states and major metropolitan areas.
..... Many cases seek relatively small sums. Their target typically have no legal representation and often don;t understand why they have been sued.
..... "A lot of these cases end in default judge men, where the consumer may not have known about the lawsuit at all," said Witte of the Consumer federation. "a judgment is a really powerful tool to take your money."
..... Creditors sometimes sell the debt to collection agencies, "which tend to be more aggressive than the original creditor," Nitzsche said. Overzealous collection spark complaints.
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In recent years, the federal Consumer financial Protection Bureau played on outsize role in fielding those complaints.
..... But the Trump Administration gutted the watchdog agency this year, [2025] slashing staff and halting much of the work. The agency still collects debt collection complaints, but consumer advocates say it is doing less to police them.
..... "The messages that companies are getting is that there is no CFPB watching their conduct anymore," Witte said.
What debt collectors can't do
..... Money Management International has a host of tips for "debtors" who want to know their rights. For a start, get any debt verified in writing and check it against your credit report.
..... Here are a few other guidelines:
& You can ask a debt collector to stop calling you at work.
* A debt collector can't threaten you with violence or curse at you.
* A collector unusually can't seize your bank accounts or have you arrested if you don;t pay immediately.