Fall behind on a debt payment and your phone will start ringing off the hook.
The Federal Trade Commission says that Florida is one of the highest-ranking states for debt collection calls.
At least 31,000 Floridians have filed complaints about these calls that are persistent and sometimes even aggressive. No matter how many times you ignore the calls, someone will call back.
John Rossen, who lives in Tampa, found himself facing mounting debt last year from credit cards.
“Partly after COVID, a lot of expenses went up. I was not able to increase my salary at the time,” Rossen said.
After exploring debt relief options, then having a late payment, his phone started ringing and it hasn’t stopped.
According to the Federal Trade Commission, debt collection calls have jumped 150%.
The FTC says more than a quarter of a million reports of debt collection calls have been filed this year.
“Our average client has six or seven accounts, you know, an average balance of $30,000 on top of often a home or a rent payment and an auto payment and possibly student loan payments,” explained Thomas Nitzsche with Money Management International.
Nitzsche said unsecured consumer debt is at an all-time high.
The calls start out coming from the creditor if you fall behind on payments.
“Once the account is charged off to a third-party collection agency, the collection efforts can become more aggressive,” Nitzsche said.
In some cases, the collection calls are a scam. Debt collectors can only take things so far, though.
“There’s the Fair Debt Collection Practices Act, which they have to follow. They can’t threaten jail time. They can’t threaten to show up at your home or tell family members,” Nitzsche said.
Nitzsche said you should always get proof in writing that the debt belongs to you.
“You don’t have to agree to anything. That’s my main advice,” he said.
Rossen’s advice to others in his position is to go through a reputable agency or directly through your bank.