12.01.15 |
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FTC Targets Deceptive Debt Collectors

Jack Russell Terrier Snarling

As an employer, it’s important to be aware of—and help your employees understand—a new effort by the Federal Trade Commission to help end unlawful debt collection practices. Working with law enforcement officials at the federal, state, and local levels, the FTC earlier this month announced a focused effort to help protect consumers from illegal debt collection practices. These illegal practices include harassment and intimidation as well as deceiving consumers into paying debts they don’t owe.[1]

Employers and HR professionals, not only consumers, need to know the facts when it comes to wage garnishments to avoid falling victim to these deceptive tactics. According to one complaint, debt collectors intimidated consumers—many of whom did not owe a debt—by threatening “to garnish consumers’ wages, suspend or revoke their driver’s licenses, have them arrested or imprisoned, or sue those who did not pay.”[2] Make sure your company is informed when it comes to the rules by which debt collectors must abide. In an infographic found here, the FTC explains that debt collectors are legally prohibited from:

  • Lying about any aspect of a debt
  • Intimidating or harassing debtors
  • Disclosing a debt to anyone else

Stay up to date on the latest in wage garnishments to help ensure proper compliance, and learn more about the larger history of wage garnishments in our previous post Garnishment: The Untold Story.


Click here to learn more about ADP SmartCompliance® Wage Garnishments.


Learn More About ADP SmartCompliance® Wage Garnishments

[1] “FTC and Federal, State and Local Law Enforcement Partners Announce Nationwide Crackdown Against Abusive Debt Collectors” Federal Trade Commission press release, November, 4, 2015, https://www.ftc.gov/news-events/press-releases/2015/11/ftc-federal-state-local-law-enforcement-partners-announce

[2] Ibid.


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