The right thing for debtors to do is to make good on their promise to pay their debt. Morally, that is the thing to do. On the debt collectors’ side, they have a moral obligation to treat debtors honorably and with respect. Just because someone is a debtor does not mean he or she is a deadbeat. However, there is enough evidence that debt collectors treat debtors abusively.

The Federal Trade Commission is recommending essential changes to how companies collect past-due obligations. Since 2007, the FTC has been evaluating whether there is a need to change the debt-collection system, including the Fair Debt Collection Practices Act enacted to protect consumers from abusive, unfair and deceptive practices by debt collectors.

In its annual report to Congress about the debt-collection law, the FTC said it received more than 78,000 complaints last year from consumers about debt collectors. The agency received more complaints about debt collectors than any other industry. As a result, the FTC put together a report released this year outlining proposed changes to address primarily two areas.

First, the agency wants to change the law to improve the information debt collectors use to hunt down debtors. Second, the FTC wants the update to reflect the way creditors contact consumers.

Debt collectors have the right to collect a debt, meaning they can sell the debt and the debt can be resold to another collection agency. This can lead to collectors having inadequate information, reaching the incorrect consumer and trying to collect the wrong amount or both.

Under current law, if a consumer disputes a debt, the collector is required to verify the correct amount owed before pursuing further collection efforts. However, “many collectors do little more to verify debts than confirm that their information accurately reflects what they received from the creditor,” according to the FTC.

If the consumer sends a timely written dispute or request for verification of debt, the collector must suspend collection efforts until it has provided the verification in writing, and if the consumer requests in writing that the debt collector cease contacting them, the collector must comply.

The best thing a debtor can do to avoid collection agencies is to communicate with creditors before the debt gets out of hand. The worst thing a debtor can do is make promises he or she cannot keep, or fail to communicate with the creditor.

Founded in 1896 as a land grant institution with a mission of providing service to the citizens of the state, South Carolina State University has evolved from a small teachers’ college into a major University center of learning and research. Located in Orangeburg, S.C., with a student population of some 4,500, South Carolina State offers more than 50 different fields of study on the undergraduate and graduate levels. South Carolina State University is accredited by the Southern Association of Colleges and Schools and is a member of the Council of Graduate Schools.

n John Goodwin is regional director of the Small Business Development Center at South Carolina State University.

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