Feds cracking down on debt collectors that exploit elderly

The Consumer Financial Protection Bureau (CFPB) is looking to stop debt collectors from harassing older Americans for money they do not owe, the agency said Wednesday.

Debt collection is one of the biggest issues facing people who have retired, according to a new survey from the CFPB. In many cases, the elderly report being hounded for medical debt and money owed by deceased family members.

“It is increasingly common for older Americans to carry debts into their retirement years, and consumers living on fixed incomes often struggle to pay off these debts,” CFPB Director Richard Cordray said in a statement. “Older Americans deserve to be treated with the respect they have earned.”

The CFPB estimates that about 30 million people in this country have an average of $1,400 in debt subject to collection. This is one of the biggest concerns for elderly people, many of whom live on fixed incomes during retirement.

Some elderly people even report debt collectors threatening to block their Social Security payments and veterans benefits until they pay off their debts.

“They also express concern that the distress of being harassed by a debt collector aggravates existing medical conditions, and thereby endangers their health,” the CFPB says.