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Relief Strategies > Beyond the Balance > Consumer Protection & Debt Relief > Why Debt‑Collection Calls Have Skyrocketed in 2025 – and What It Means for You

Why Debt‑Collection Calls Have Skyrocketed in 2025 – and What It Means for You

6 Aug, 2025
A stylized debt collector shark in a business suit looms next to a smartphone showing an incoming call from “Unknown – Debt Collector,” rendered in bold political poster style with red and blue tones.
Consumer Protection & Debt Relief 0 Comments JamesF_CEO

By James Farias
Founder & CEO, Relief Strategies, LLC

Introduction

If your phone has been blowing up with calls about old debts, you’re not imagining things. In the first quarter of 2025, Americans filed more than 112,000 complaints about debt collection calls with the Federal Trade Commission (FTC), more than double the number of complaints filed during the same period in 2024. In some states, the volume of calls per capita topped 80 per 100,000 residents. Nearly 47 percent of the 2025 complaints were flagged as abusive or threatening, an almost fourfold increase from the previous year. This surge isn’t limited to one region; major cities like Atlanta, Dallas, Miami and Houston have all seen spikes in complaint volume.

What’s Driving the Surge?

Researchers and Consumer Advocates Cite Several Overlapping Factors

Rising Household Debt

Consumers are carrying heavier debt loads. The Federal Reserve Bank of New York reports that total household debt reached $18.39 trillion in the second quarter of 2025, up $185 billion from the previous quarter. Credit card balances rose to $1.21 trillion, auto loans climbed to $1.66 trillion and mortgage balances hit $12.94 trillion. LendingTree notes that Americans’ credit card debt has grown 54 percent since 2021, with average balances among cardholders rising from $6,921 in Q1 2024 to $7,321 in Q1 2025. High debt and higher interest rates make it harder to keep up with payments, which in turn triggers more collection activity.

Aggressive Tactics and Scammers

In NumberBarn’s analysis of FTC data, nearly half of the complaints involved calls flagged as abusive, threatening or harassing. That suggests a rise in scam calls or illegal collection tactics. Experts interviewed by WRTV said that legitimate collectors are stepping up efforts to recover debts while scammers take advantage of the confusion.

Cartoon shark character in a suit, Shady Pay, holding a giant pen beside a speech bubble that says: “Scammers love chaos. When people are broke, stressed, and scared, they don’t ask enough questions. That’s the hustle.”
Scammers thrive on stress and confusion. Shady Pay explains how chaos fuels predatory debt collection.

Economic Stress

Inflation and higher living costs have squeezed household budgets. In the WRTV story, Indianapolis resident Judy Perkoff Smith describes getting “at least four” collection calls a day, even though she has paid off roughly $50,000 of credit card debt. A lost spouse’s income and rising expenses left her struggling, illustrating how quickly debt can spiral for families living on tight margins.

More Reporting

Consumer advocates also credit the spike to increased public awareness of how to report illegal calls. The FTC encourages consumers to file complaints online, and the ease of reporting may be capturing more data.

Is the Government Watchdog Still Watching?

The Consumer Financial Protection Bureau (CFPB) is the federal agency charged with enforcing the Fair Debt Collection Practices Act (FDCPA). In May 2024, the U.S. Supreme Court ruled in a 7-2 decision that the CFPB’s funding structure is constitutional. Despite that, the bureau has faced political headwinds. A budget bill signed on July 4 2025 cut the CFPB’s funding cap from 12 percent of the Federal Reserve’s operating expenses to 6.5 percent, a 46 percent reduction. Senate Republicans initially wanted to eliminate CFPB funding entirely, while Senator Elizabeth Warren argued that cutting the bureau’s budget would leave consumers unprotected.

Worse, the administration sought to lay off roughly 90 percent of CFPB staff in April 2025, including the entire complaints division and offices serving servicemembers and older Americans. A federal judge halted those firings and chastised the administration for attempting to dismantle the agency. Consumer advocates warn that if oversight is weakened, predatory collectors and scammers may feel emboldened. While the jump in complaints predates the funding cuts and firings, uncertainty about enforcement may contribute to more aggressive collection behavior.

What This Means for Consumers

For people struggling with debt, an increase in collection calls adds stress and uncertainty. WRTV’s experts say legitimate collectors should never threaten arrest or demand immediate payment by phone. They recommend watching for red flags such as excessive fees, calls at odd hours, or callers who cannot explain the debt. Under the FDCPA, consumers have rights: collectors must identify themselves, provide written verification of the debt within five days of contact, and stop calling if you dispute the debt in writing.

Cartoon ostrich character Ollie Featherly smiles beside a speech bubble that reads: “You don’t realize how loud the noise gets until you’re trying to breathe through it. One call turns into four. One bill turns into six. And suddenly it’s not just your phone ringing, it’s your peace cracking.”
Ollie Featherly reminds us that collection calls aren’t just financial, they take a toll on our peace of mind.

Here Are Steps to Protect Yourself

Verify the Caller

Ask for the collector’s name, the company’s name and mailing address, and details about the debt. If the caller refuses, hang up.

Request Validation

The FTC says collectors must send written verification of the debt. If they cannot provide it, the call may be a scam.

Don’t Respond to Threats

Legitimate collectors cannot threaten arrest, revoke your driver’s license or contact your employer if you don’t pay immediately. Report such calls to the FTC at ReportFraud.ftc.gov.

Check the Statute of Limitations

Debt has a time limit for collection lawsuits, which varies by state. In Texas, for example, the statute of limitations for most debts is four years. Making a payment or promising to pay can restart the clock.

Get Help

Consider talking with a nonprofit credit counseling agency. They can help you understand your rights, negotiate with creditors, and develop a plan to pay down or settle your debts.

Final Thoughts

The sharp rise in debt collection complaints reflects a mix of higher consumer debt, economic pressure, aggressive collection tactics and scam activity. Political efforts to undercut the CFPB raise concerns about future enforcement, but the agency’s funding and authority remain intact for now. Consumers should stay vigilant: verify who’s calling, insist on written validation of debts, and report harassment. If you’re overwhelmed by debt, legitimate help exists, and knowing your rights is the first step to protecting yourself.

Need Help?

Relief Strategies can walk you through your options and help you protect your future while addressing the stress today.

👉 Visit ReliefStrategies.com or contact us at (888) 870-7922 for a free consultation.

About the Author

James Farias is the CEO of Relief Strategies, LLC, a leading firm dedicated to helping individuals achieve financial freedom through effective debt relief solutions. With over 30 years of business leadership experience and a deep passion for empowering others, James has guided countless clients through the process of reducing debt and regaining control of their finances.

Recognizing how quickly debt can overwhelm even the most disciplined individuals, James focuses on strategies that lower monthly payments, relieve financial stress, and unlock new opportunities. His mission is to help people move beyond financial hardship and build a more secure future.

Connect with James on LinkedIn or visit Relief Strategies to learn more about how he and his team can assist you on your journey to financial wellness.

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