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Complaints about aggressive debt collection have skyrocketed in recent months, federal data shows, with signs that more Americans are falling behind on credit card and medical bills.
Some consumer advocacy groups say the increase in debt collection complaints suggests debt collectors may be feeling emboldened by the president’s administration, which has watered down the federal government’s consumer oversight efforts.
The Federal Trade Commission recorded more than 140,000 debt collection complaints in the second quarter of 2025, up from about 44,000 in the same period last year. Complaints are most common in Georgia, Texas, and Florida.
“I think we’re just seeing more people getting into debt and then having trouble collecting money,” said Thomas Nitsche, a financial educator at Money Management International, a credit counseling nonprofit.
U.S. household debt reached $18.4 trillion in the second quarter of 2025, up from $14.3 trillion in the same period in 2020. Credit card debt exceeded $1.2 trillion in the second quarter, up from about $800 billion in the same period five years ago.
The consumer loan delinquency rate was 2.8% in the second quarter, the highest level since 2012.
“Americans are in more debt than at any point in history,” said Erin Witte, director of consumer protection for the nonprofit Consumer Federation of America.
“They don’t understand my situation.”
Priscilla Lishavi, of Jacksonville, Florida, racked up nearly $30,000 in medical debt when her middle child endured cancer treatment starting in 2021.
Rishabi, 36, is a single mother of three children. In addition to medical debt, she also had credit card debt, which accumulated during the divorce. She is working with Money Management International to pay off her credit card debt while also paying off her medical bills.
She receives calls from debt collectors about twice a week.
“They don’t understand my situation,” she said. “I told them, ‘I can’t pay you more than I’m paying you right now,’ and they still call me.”
The main complaints regarding debt collection are:
Typically, if a creditor decides to give up on sending a bill and decides to contact the consumer by phone, debt collectors will come down. Some creditors use in-house debt collectors. Some companies sell delinquent accounts to debt collection companies.
Some debt collection tactics are unethical and even illegal. According to an analysis of federal data by the National Consumer Law Center and Consumer Federation of America, the top debt collection complaints are:
- Tried to collect unpaid debts (39.6%)
- Issue of written notice of debt (20.5%)
- False statements or representations (9.9%)
- Abusive communication tactics (7.9%)
- Acted negatively or was threatened (7.5%)
“By far, the most common complaints are attempts to collect on unpaid debts,” said April Kuhnhoff, senior attorney at the National Consumer Law Center.
ACA International, an industry group representing collection agencies, says debt collectors take all complaints seriously.
“Two-way communication between consumers and collection agencies is the best way to learn about options for successfully resolving debts,” the group said in a statement.
The trade group noted that the FTC’s database includes complaints that are actual inquiries, such as whether insurance will cover a debt.
Debt collections slowed during the coronavirus pandemic as some creditors offered debt forgiveness and suspended collection efforts. Federal stimulus payments helped consumers pay down debt and increase savings.
Once the pandemic subsided, the debt collection industry was once again in turmoil, along with related complaints.
The number of complaints was lower at about 22,000 in the final quarter of 2022, according to FTC data. In the first quarter of 2024, it rose to 45,000, and in the first quarter of 2025, it reached 137,000.
Debt collection lawsuits are rapidly increasing
A related trend is a sharp increase in debt collection lawsuits in state courts. The number of court filings soared in 2023 and 2024, according to a Sept. 2 report from the Pew Charitable Trusts based on state and metropolitan data.
In many cases, a relatively small amount of money is required. Their targets typically have no legal representation and often do not understand why they are being sued.
“Many of these lawsuits end in default judgments, and consumers may never have known about the lawsuit,” said Witte of the Consumer Federation. “Judgments are very powerful tools to take money away.”
Creditors sell debts to collection agencies, and “collection agencies tend to be more aggressive than the original creditors,” Nitsche said. Overzealous collectors cause complaints.
In recent years, the Federal Consumer Financial Protection Bureau (CFPB) has played a major role in responding to these complaints.
But the Trump administration dismantled the watchdog agency this year, cut its staff and halted much of its operations. The agency still accepts debt collection complaints, but consumer advocates say the agency is doing little to enforce them.
“The message that companies are getting is that there is no longer a CFPB to police their conduct,” Witte said.
Here’s what debt collectors can’t do
Money Management has many tips for “debtors” who want to know their rights. First, get written proof of the debt and check it against your credit report.
Other guidelines include:
- You can ask the debt collector to stop calling your workplace.
- Debt collectors cannot threaten you with violence or abuse you.
- Typically, collectors cannot seize your bank account or arrest you if you don’t pay promptly.
Click here to see the complete list.
