(2 of 3)

“Collectors jump right to the end game — saying they are going to call your employer and freeze your bank accounts. Yes, in time that’s all possible. but that can’t happen the minute you can’t make the payments. they have no problem lying,” he said.

Consumers filed 79,000 complaints against third-party collection agencies in 2008, representing 19 percent of all complaints with the Federal Trade Commission.

No other industry — including mortgage brokerage, credit bureaus and telemarketing firms — logged as many grievances.

An October report, however, found that federal agencies took little action to protect consumers from abusive practices.

In fact, only 32 formal enforcement actions were taken in the past decade, according to the U.S. Government Accountability Office.

In new York, Attorney General Andrew Cuomo is moving forward with an investigation into unlawful debt collection practices, in July suing to throw out more than 100,000 default judgments alleged to have been flawed.

A month earlier, his office reached an agreement in which three new York collection companies paid $245,000 to the state in penalties and costs as a result of deceptive collection methods.

After 25 years in the collection business, Al Finnie said, he is used to the vilification of his industry.

“As they say, one bad apple spoils the barrel,” said Finnie, owner of Alert Collection Services Company in new Rochelle.

He supports federal and state protections, saying bad collection agencies are known to resort to intimidation to get their money.

Yet more widespread regulation of the industry would be difficult, especially as business booms, he said.

“You have a large number of professional deadbeats — and that seems to be growing,” Finnie said. “I’m not sure why they’re becoming more brazen than they were, but maybe it’s because the agencies don’t pursue it enough.”

Debt collectors become more aggressive, consumers cry foul