The U.S. Consumer Financial Protection Bureau will seek out public opinion before proposing new rules targeting the end of intimidating tactics used by debt collectors, Reuters reported on Wednesday, with about one in 10 Americans going into debt of some sort after the financial crisis.

"We want to hear how we can better protect consumers and bring greater accountability to this multibillion-dollar industry without hamstringing legitimate debt-collection activities," said the agency's director, Richard Cordray, adding, "we are seeking to hear from the public...about what works and what does not in the current debt collection market."

Among the most common complaints against debt collectors involve harassing phone calls, lack of verification of the debt and people becoming aware of a collection account only through their credit report.

There has also been growing concern that debt collectors have been intimidating consumers through social media or other Internet-based tools, according to Reuters.

"Now it is time to look closely at how we can improve and modernize existing measures that were written before the Internet, before social media, and before many other new communication technologies," Cordray noted.

"While we can put a number on debt, we cannot quantify the emotional toll that it takes on consumers who live under the shadow of indebtedness and then have to cope with mistreatment by debt collectors," he said.

Even worse, some consumer advocates claim that some people pay off debt they did not owe in the first place just to end the harassment.

"When debt collectors get it wrong - when they have the wrong person, the wrong amount or other wrong information - consumers can suffer substantial harm," Cordray said.

"Consumers can be harassed over a debt that is not theirs or that they do not recognize because the information is wrong. Credit reports may be marred by misinformation," he pointed out.

The CFPB will reportedly publish a 114-page request for comments on debt collection, asking 162 questions to consumers on the difficulties they face.

The activities of debt collectors are governed by a 1977 federal law known as the Fair Debt Collection Practices Act. It restricts calls at home to after 8 a.m. and before 9 p.m., but does not set any boundaries for emails, cellphones or social media.

There are more than 4,500 debt-collection firms in the U.S. The industry is believed to be worth up to $12.2 billion, charging banks and other institutions a fee for chasing up on consumer debt.

Cordray noted that since the bureau began accepting debt collection complaints in July, it has received about 5,000 consumer grievances.

"Debt collection has more salience today than perhaps at any time in our country's history," he said. "Consumers deserve to be treated with dignity and respect, and businesses should be able to operate fairly and reasonably to collect the debts they are legitimately owed."

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