Hung up on debt: Complaints about collections calls are up nearly 200%. Make sure you know your rights

Hung up on debt: Complaints about collections calls are up nearly 200%. Make sure you know your rights When James Reinhardt’s phone started ringing over and over, he thought it was just a temporary annoyance — maybe a billing question or a stray spam call. Instead, the calls kept coming, day after day, each one a reminder that something had gone sideways with his plan to get ahead of his credit card balances. Like many Americans trying to take control of their finances, Reinhardt told CBS News Pittsburgh that he believed he had signed up for a debt consolidation program that would simplify his payments. What he later realized was that he had enrolled with a debt settlement company, a move that can involve stopping payments to creditors so accounts fall into default before negotiating reductions. The result was a barrage of collection calls that left him feeling overwhelmed and unsure of what to do next (1). Must Read - Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how - This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick? - Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP His story lands at a time when complaints about debt collection calls have surged nationwide – up nearly 200%, according to federal data — reflecting both rising debt levels and widespread confusion about how debt relief programs work. For many households already stretched by higher interest rates and living costs, the experience can feel like financial quicksand (2). Why complaints are spiking Reinhardt said he thought he was being proactive by trying to consolidate the credit card balances as they crept up. But the collections calls just worsened his stress. “As much as I blocked it, it felt like cockroaches,” he told CBS News Pittsburgh. Credit counselors say this scenario is common. Debt settlement firms typically charge fees that can run 15% to 25% of the balance you owe, according to the National Foundation for Credit Counseling, and letting accounts lapse can cause significant credit damage (3). According to a financial expert who spoke to CBC, consumers may see their credit scores fall by as much as 100 points during the settlement process, while late fees and interest continue to accumulate. The Federal Trade Commission logged more than 400,000 complaints related to debt collection calls last year. Many consumers report repeated contact, difficulty verifying debts, and confusion about their options, especially when multiple collectors become involved (1).