November 2014

A snapshot of debt 

collection complaints 

submitted by older 

consumers

Office for Older Americans
2 CONSUMER FINANCIAL PROTECTION BUREAU

Table of contents

Table of contents.........................................................................................................2

1. Introduction...........................................................................................................3

2. One-third of complaints from older consumers are about debt 

collection...............................................................................................................5

2.1 Older consumers complain of misidentification...................................... 7

2.2 One-third of older consumers could not identify the debt being 

collected ....................................................................................................8

2.3 Older consumers report that debt collectors have inaccurate or 

inadequate information about debts they are collecting ....................... 10

2.4 Older consumers complain of frustrating problems involving collection 

of medical debts...................................................................................... 10

2.5 Older consumers complain that debt collectors attempt to collect the 

debts of deceased family members .........................................................11

2.6 Older consumers complain that debt collectors harass them with 

repeated calls and offensive language.................................................... 12

2.7 Older consumers complain that debt collectors threaten dire 

consequences for non-payment ............................................................. 14

3. Referrals of and company responses to older consumers’ debt 

collection complaints.........................................................................................16

4. Conclusion ..........................................................................................................19
3 CONSUMER FINANCIAL PROTECTION BUREAU

1. Introduction

Older Americans, like many of their younger counterparts, increasingly have debts in collection.

From 2002 to 2012, the percentage of American consumers with at least one account in 

collection increased from less than 9 percent to a record 14.6 percent (approximately 30 million 

adults).1 Older Americans are likely to continue being part of this trend as many of them hold 

debt and struggle to stay current on their obligations.2

Since September 2013, consumers have submitted more complaints with the Consumer 

Financial Protection Bureau (CFPB or Bureau) about debt collection than about any other 

product or service.3 Older consumers are no exception to this trend. This snapshot provides an

 

1 See Fed. Reserve Bank of N.Y., Quarterly Report on Household Debt and Credit (Aug. 2014), at 15,

available at http://www.newyorkfed.org/householdcredit/2014-q2/data/pdf/HHDC_2014Q2.pdf

(referring to collection actions predominantly associated with medical and utility bills).

2 See generally, Fed. Reserve Bd., 2013 Survey of Consumer Finances Chartbook (2013), at 837, available 

at http://www.federalreserve.gov/econresdata/scf/files/BulletinCharts.pdf (showing the percentage of 

families with debt by age from 1989-2013); see generally, Fed. Reserve Bd., Insights into the Financial 

Experiences of Older Adults: A Forum Briefing Paper (July 2013), at 49, available at

http://www.federalreserve.gov/newsevents/conferences/older-adults-forum-paper-20130717.pdf 

(showing that 14 percent of consumers age 60 to 69 and 11 percent of consumers age 70 and older

needed help covering the costs of bills and expenses in 2013).

3 Complaints are submissions that express dissatisfaction with, or communicate suspicion of wrongful 

conduct by, an identifiable entity related to a consumer’s personal experience with a financial product or 

service. The CFPB accepts, responds to and analyzes consumer complaints. 12 U.S.C. § 5493(b)(3). Since 

July 2011, the CFPB has continued to work toward expanding its complaint handling to include new 

products and services under its authority. For more information about the CFPB complaint handling 

process, visit: http://www.consumerfinance.gov/complaint/process/.
4 CONSUMER FINANCIAL PROTECTION BUREAU

overview of the debt collection complaints that older consumers submitted to the CFPB from 

July 2013 to September 2014.4

 

4 The CFPB’s Office of Financial Protection for Older Americans prepared this snapshot. The Office, 

among other things, works with other offices throughout the Bureau to protect individuals 62 and older 

from unfair, deceptive, and abusive practices. 12 U.S.C. § 5493(g)(1) and (g)(3)(E).
5 CONSUMER FINANCIAL PROTECTION BUREAU

2. One-third of complaints from 

older consumers are about 

debt collection

Between July 10, 2013 and September 30, 2014, the CFPB handled approximately 25,800 

complaints from older consumers about a range of products and services.5 Over one-third of 

those complaints were about debt collection.6 (Figure 1)

Since September 2013, older consumers, like their younger counterparts, have consistently 

submitted more complaints each month about debt collection than about any other financial 

product or service.

“A collection agency called repeatedly to collect on a debt that is not mine. I told 

them it is not mine. Consequently, they put a lien against my property.”

 

5 The data and analysis presented in this snapshot is based on the complaints submitted by or on behalf of 

consumers who voluntarily reported their age as 62 and older.

6 Debt collection complaints accounted for 35 percent of all of the complaints submitted to the Bureau

during the same period.
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FIGURE 1: OLDER CONSUMERS’ COMPLAINTS – BY PRODUCT (JULY 2013 – SEPTEMBER 2014) 7

Source: CFPB Complaints

 

7 Figure 1 shows the distribution of complaints submitted to the CFPB by older consumers from July 10, 

2013 to September 30, 2014 by product. The category “other products” includes consumer loans (3 

percent), money transfers (1 percent), student loans (1 percent), and other products and services (1 

percent).

Debt 

collection

34%

Mortgage

23%

Bank account 

or service

12%

Credit 

reporting

12%

Credit card

11%

Other 

products

7%

Reverse 

mortgage

1%
7 CONSUMER FINANCIAL PROTECTION BUREAU

FIGURE 2: OLDER CONSUMERS’ DEBT COLLECTION COMPLAINTS – BY ISSUE (JULY 2013 – SEPTEMBER 

2014) 8

Source: CFPB Complaints

2.1 Older consumers complain of 

misidentification

Older consumers’ most frequent debt collection complaint is that collectors demand payment of 

a debt not owed. (Figure 2) Many report that although they may have the same name as the 

actual consumer alleged to owe a debt, they are not the correct consumer. Older consumers also 

report that collectors reject or ignore their attempts to correct instances of mistaken 

identification. 

 

8 The percentages in this figure are similar with complaints submitted by consumers of all ages. 

Percentages may not sum up to 100 percent due to rounding.

5%

8%

8%

8%

24%

48%

0% 10% 20% 30% 40% 50% 60%

Improper contact or sharing of information

Taking or threatening an illegal action

Disclosure and verification of debt

False statements or representation

Communication tactics

Continued attempts to collect debt not owed
8 CONSUMER FINANCIAL PROTECTION BUREAU

“I am receiving a large volume of telephone calls from [debt collection 

company] regarding an apparent debt owed by my ex-wife from whom I have 

been divorced for 15 years. [The debt collection company] acknowledged receipt 

of my email protest. I also wrote to their CEO. In response, the communications 

from [the debt collection company] have increased.”

In addition, when the debt is transferred or sold to another collector, older consumers find 

themselves trying to explain the same problem to a new collector.

2.2 One-third of older consumers could not 

identify the debt being collected

Nearly one-third (29 percent) of the older consumers who submitted debt collection complaints 

were unable to identify the debt being collected.9 This suggests that many older consumers may 

have insufficient information about debts that are in collection. (Figure 3)

Of the consumers who identified a specific type of debt, 17 percent reported that credit card debt 

was the original debt. Medical debt accounted for ten percent of the original debts and payday 

loans accounted for five percent. 

The final 33 percent of older consumers reported that the debt originated from a variety of other 

sources such as rent, homeowners’ association fees and utility bills.

 

9 Similarly, 29 percent of those who self-identify as being under 62 were unable to identify the debt being 

collected.
9 CONSUMER FINANCIAL PROTECTION BUREAU

FIGURE 3: UNDERLYING DEBTS IDENTIFIED IN OLDER CONSUMERS’ DEBT COLLECTION COMPLAINTS 

(JULY 2013 – SEPTEMBER 2014) 10

Source: CFPB Complaints

 

10 Percentages do not equal 100 percent due to rounding.

33%

17%

10%

5%

3% 2% 2%

29%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Other (i.e.

phone,

health

club, etc.)

Credit

card

Medical Payday

loan

Mortgage Auto Student

loan

I do not

know
10 CONSUMER FINANCIAL PROTECTION BUREAU

2.3 Older consumers report that debt 

collectors have inaccurate or 

inadequate information about debts they 

are collecting

Older consumers report that it is difficult to obtain accurate and trustworthy information about 

alleged debts from collectors. For example, many older consumers report that they inform 

collectors that they do not owe the debt, do not recognize it, or believe the amount that debt 

collectors demand is wrong. They also report that collectors fail to provide additional 

information to help them identify the debt. These complaints often express strong feelings of 

frustration or confusion.

2.4 Older consumers complain of frustrating 

problems involving collection of medical 

debts

Older consumers report problems in the collection of medical debt. These complaints describe 

frequent and repeated attempts to collect medical bills that are covered by insurance. Older 

consumers describe being confused and frustrated because debt collectors attempt to collect 

medical expenses while the consumer is simultaneously attempting to correct billing mistakes or 

waiting for providers and insurers to resolve disputes. 

Another common complaint from consumers is that they first learn that a medical expense is 

considered unpaid when they review their credit report.11 Older consumers report that they do 

not have the opportunity to correct misinformation and resolve billing matters before a medical 

 

11 See also CFPB, Data Point: Medical Debt and Credit Scores (May 2014), at 5, available at

http://files.consumerfinance.gov/f/201405_cfpb_report_data-point_medical-debt-credit-scores.pdf.
11 CONSUMER FINANCIAL PROTECTION BUREAU

or other type of debt is reported to the credit bureaus because they are not notified that the debt 

is in collection.12

“I am a 100% Disabled Veteran P&T, sc. On emergency room visits to the local 

hospital, [name of hospital] regional emergency dept., the VA was not billed 

properly or on time and this resulted in 12 claims on my credit bureau report. (9 

claims from [company name] Radiology alone?) I was unaware of the extent of 

the claims until I recently sought financing to install a handicap ramp to my 

home. .... When I contacted [name of hospital] regional emergency dept. they 

said that I had no outstanding balance and that the VA had paid them.”

2.5 Older consumers complain that debt 

collectors attempt to collect the debts of 

deceased family members

Older consumers describe collectors’ repeated attempts to collect debts of deceased family 

members after telling collectors that they are not personally responsible for the debt, or that 

there is no money left in the deceased borrower’s estate. Many older consumers receive calls to 

collect a decedent’s debt after they ask collectors to stop contacting them. Older consumers also 

report that debt collectors continue to call or send letters to family members after informing 

debt collectors that the deceased’s estate is in probate. Some complaints describe collection 

attempts made years after probate is concluded.

Many consumers express confusion and frustration about collectors refusing to cease attempts 

to collect the debt of a deceased relative.

“My husband died ..., 2014. I received a letter on [date] from [name and address 

of debt collector], Minn. MN. I called today [date]. The first call a woman was 

asking where I was. I hung up on her. I called back and was referred to [name 

 

12 See also CFPB, Consumer Response: A Snapshot of Complaints Received July 21, 2011 through June 

30, 2014 (July 2014), at 17, available at 

http://files.consumerfinance.gov/f/201407_cfpb_report_consumer-complaint-snapshot.pdf. 
12 CONSUMER FINANCIAL PROTECTION BUREAU

of collector]. After my crying through the whole conversation, he offered for me 

to pay [three quarters of the balance due on the] doctors’ bills of my husband. 

No one told me I was not responsible for the debt. He was asking what assets 

my husband had and if I went to probate court on the estate. He told me [that 

my husband’s insurance] never paid anything on the bill. ... I am now reliving 

watching my husband suffer years of sickness ....”

2.6 Older consumers complain that debt 

collectors harass them with repeated 

calls and offensive language

The second most common debt collection complaint the Bureau receives from consumers 

involves collectors’ communication tactics. Older consumers specifically complain that debt 

collectors use abusive communication tactics to intimidate, aggravate or coerce them into 

making payments. Older consumers complain that debt collectors make successive calls using 

profanity, condescension, indignation or rage, including calling the consumer derogatory 

names, such as “deadbeat,” “liar,” or “fraud.” When consumers spoke with collectors, many 

described collectors’ voice, tone and attitude negatively, using words such as “rude,” “nasty,”

and “abusive,” among others. (Figure 4)

Some older consumers are unable to afford to make debt payments especially when they are 

retired and live on a small fixed income. Older consumers state that collectors sometimes refuse 

to take “no” for an answer, criticize their financial choices, and demand that the consumer pay 

the debt over other expenses, such as rent, utilities or medical expenses.
13 CONSUMER FINANCIAL PROTECTION BUREAU

FIGURE 4: WORDS OLDER CONSUMERS USED TO DESCRIBE COLLECTION CALLS – BY FREQUENCY

(JULY 2013 – SEPTEMBER 2014)13

Source: CFPB Complaints

 

13 Staff from the Office for Older Americans read approximately 1,200 debt collection complaints 

submitted by older consumers who complained about communications with collectors. We 

systematically identified and listed (positive and negative) adjectives, adverbs and phrases used to 

describe the style, language, and tone used by debt collectors in their verbal communications. Words in 

Figure 4 appear larger relative to the frequency that they appear in older consumers’ complaints.
14 CONSUMER FINANCIAL PROTECTION BUREAU

2.7 Older consumers complain that debt 

collectors threaten dire consequences 

for non-payment

Older consumers report that debt collectors threaten dire consequences for non-payment, such

as garnishment of wages and federal benefits, arrest, and criminal prosecution.

“[Debt collection company] of [name of city in] IN, has called twice at my work 

place regarding collection of a federal student loan debt that I do not owe. They 

say that someone with my same name and same year and month of birth owes 

$67,286.86 on a student loan to [...] University. No one in my family has ever 

attended [that university]. The name of the street for the person’s address that 

they are seeking does not match mine and the last four numbers of the Social 

Security Number of the person they are seeking are different from mine. I 

informed them of this the first time they called a couple of months ago. A person 

called Ms. [...] called my workplace again on October [...], 2013, asserting the 

same claim and said that they would be sending an order to my employer to 

[garnish] my wages. When I told them that what they were doing was illegal, 

they said that if, “the social security number was not right, then my employer 

would probably ignore it.’”

Debt collectors sometimes threaten to garnish older consumers’ Social Security, Supplemental 

Security Income (SSI) or Veterans’ benefits, even though these funds ordinarily are not subject 

to garnishment by the collectors.14 Older consumers report that these threats cause them 

significant distress, especially when they rely on these federal benefits to pay essential living 

 

14 Many federal benefits are generally protected from garnishment. See, e.g., 42 U.S.C. § 407(a); 42 U.S.C. 

§ 1383(d)(1). Some laws, however, authorize exceptions to this rule, for instance for the collection of 

federal debts. See, e.g., 38 U.S.C. § 5301. See also http://www.consumerfinance.gov/askcfpb/1157/cancreditor-garnish-my-social-security-benefits-pay-debt.html; and 

https://faq.ssa.gov/link/portal/34011/34019/Article/3731/Can-my-Social-Security-benefits-begarnished-for-alimony-child-support-or-restitution.
15 CONSUMER FINANCIAL PROTECTION BUREAU

costs. Consumers also express concern that this distress aggravates existing medical conditions, 

and thereby endangers their health. 

In addition, older consumers report that debt collectors threaten to arrest them at work or in 

front of their family members and send them to jail. 

Older consumers also report receiving suspicious calls from individuals who claim to be debt 

collectors. In many cases, these callers claim to be working with local police, and threaten 

consumers with arrest if they refuse to authorize payment by phone.15 Many of these complaints 

may be describing a perennial scam in which imposters defraud consumers by falsely claiming 

that they owe a debt.16

 

15 See, e.g., FTC, Press Release, Court Halts Alleged Fake Debt Collector Calls from India, Grants FTC 

Request to Stop Defendants Who Often Posed as Law Enforcement (Feb. 21, 2012), at

http://www.ftc.gov/news-events/press-releases/2012/02/court-halts-alleged-fake-debt-collector-callsindia-grants-ftc.

16 See, e.g., FBI, Press Release, New Variation on Telephone Collection Scam Related to Delinquent 

Payday Loans (February 22, 2012), at http://www.fbi.gov/scams-safety/e-scams.
16 CONSUMER FINANCIAL PROTECTION BUREAU

3. Referrals of and company 

responses to older

consumers’ debt collection 

complaints

Of the approximately 8,700 debt collection complaints that the Bureau has received from older 

consumers, it has forwarded approximately 3,800 to 650 companies for review and response. 

Since July 2013, CFPB has sent complaints to more debt collection companies than any other 

type of company, including mortgage and credit card companies. (Table 1)
17 CONSUMER FINANCIAL PROTECTION BUREAU

TABLE 1: NUMBER OF COMPANIES OLDER CONSUMERS HAVE COMPLAINED ABOUT (JULY 2013 –

SEPTEMBER 2014) 17

Products Number of companies Number of complaints sent 

to companies

Debt collection 650 3,800

Mortgage 220 5,400

Bank account or service 100 2,000

Consumer loan 100 500

Credit card 70 2,100

Source: CFPB Complaints

Companies have responded to over 92 percent of the complaints sent.18 The majority of these 

complaints were ‘closed with explanation,’ which includes an explanation describing the 

company’s response to the complaint. In other instances, companies provided monetary or nonmonetary relief to the consumer. (Figure 5)

 

17 The table shows the number of companies older consumers have complained about and the number of 

complaints sent for the top five complaint categories. The number of complaints is rounded to the 

nearest 100.

18 After the CFPB forwards complaints to companies, the company has 15 days to respond and 60 days to 

provide a final response, where applicable. Company responses provided outside of these windows are 

deemed untimely. However, consumers eventually receive a response in 60 percent of cases where 

companies did not respond in a timely manner.
18 CONSUMER FINANCIAL PROTECTION BUREAU

FIGURE 5: COMPANIES’ RESPONSES TO DEBT COLLECTION COMPLAINTS BY OLDER CONSUMERS 

(JULY 2013 – SEPTEMBER 2014)

Source: CFPB Complaints

The remaining 4,900 debt collection complaints were sent to other regulatory agencies or were 

incomplete or pending at the time of publication. In many of the incomplete or pending 

complaints, the debt collector’s identity was unknown, or the debt collector was unresponsive to 

the consumer’s request for information about its identity. Determining the identity of collectors 

is often difficult due to the large number of debt collectors and the frequent sale and transfer of 

debts from one company to another. 19

 

19 See FTC, The Structure and Practices of the Debt Buying Industry (Jan. 2013), at 11, available at 

http://www.ftc.gov/sites/default/files/documents/reports/structure-and-practices-debt-buyingindustry/debtbuyingreport.pdf.

<1%

1%

3%

3%

8%

20%

65%

0% 20% 40% 60% 80%

Awaiting response

Administrative response

Closed with monetary relief

Closed (without relief or explanation)

Company did not provide a timely response

Closed with non-monetary relief

Closed with explanation
19 CONSUMER FINANCIAL PROTECTION BUREAU

4. Conclusion

Older consumers submit more complaints about debt collection than about any other product or 

service. According to complaints, older consumers experience a range of problems – from the 

dearth of basic information about the debts being collected, and collection attempts that target 

the wrong consumer, to collectors’ use of coercive, offensive or misleading communications. 

Consumers often tell us that these practices lead to confusion about how to respond to collection 

attempts and some say it causes them severe distress and anxiety.

As a rising number of older consumers carry debts into retirement,20 informed debt 

management and protection from collector misconduct are increasingly critical to older 

consumers’ long-term financial security and well-being. This holds especially true for those 

older consumers who live on a fixed income, derive their income primarily from federal benefits, 

or lost significant assets and savings in the recent recession.

 

20 See footnote 1, supra.