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Document Type

Article

Abstract

Consumer debt is a long-standing global phenomenon, yet the regulation of debt collection practices remains fragmented across international borders. This lack of uniform standards leaves consumers vulnerable to debt collectors who exploit weak legal frameworks, resorting to abusive, harassing, and deceptive tactics to pressure repayment. Such practices not only undermine consumer trust in the financial services industry but also prove self-defeating; aggressive collection methods can destabilize a consumer’s financial footing and daily livelihood, ultimately impairing their capacity to repay.

This article provides a comparative evaluation of consumer protections against abusive and harassing debt collection practices in the United States and the European Union (EU). The regulatory frameworks in the United States and the EU are structurally distinct. The United States relies primarily on a centralized federal regulatory model through the Fair Debt Collection Practices Act (FDCPA). In contrast, the EU regulates abusive debt collection through a more fragmented framework derived from multiple directives and regulatory instruments, including the Unfair Commercial Practices Directive (UCPD), the Consumer Credit Directive (CCD), the Credit Servicers and Credit Purchasers Directive, the Unfair Contract Terms Directive (UCTD), the General Data Protection Regulation (GDPR), and the implementation mechanisms of individual Member States. These differing regulatory approaches create a useful comparative framework for evaluating how legal systems attempt to prevent abusive debt collection practices and protect consumer welfare. By comparing the centralized statutory regime of the United States with the EU’s directive-based regulatory framework, this article argues that structural design, procedural accessibility, and enforcement mechanisms significantly influence the effectiveness of legal protections against abusive and harassing debt collection practices.

Part II examines the consequences of abusive and harassing debt collection practices for both consumers and the financial services industry. Part III provides a historical overview of debt collection practices in the United States and the EU, tracing the developments that led to modern regulatory frameworks. Part IV analyzes the regulatory and directive-based frameworks used to address abusive and harassing debt collection practices. Part V offers a comparative analysis of the two systems from the perspective of consumer protection and best policy practices, evaluating the overall effectiveness of each framework while examining their structural and procedural limitations. Finally, Part VI concludes.

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