Democrat Eliot Spitzer called for the state to stiffen its penalties for threats, harassment and other outlawed tactics. "Consumer protection agencies need more weapons in their enforcement arsenal against debt collectors who use illegal and abusive practices," a statement from his campaign office said.

In addition, he said cracking down on the creation of bad debt by predatory lending practices was as important as reining in aggressive collectors.

John Faso, the Republican candidate, called the tactics of unscrupulous collectors "shocking" but said that expanding state power was not the best way to combat them. Instead, existing federal penalties should be increased, and professional groups should examine the practices of law offices that collect consumer debts. "That would be preferable to a whole new regime of state authority," he said.

However, Faso said that the state could also look at licensing collectors, who face no license requirement outside of Buffalo and New York City.

The candidates' statements came in response to questions from The Buffalo News, which published a series on collection abuses last month. Some collectors used threats and harassment, revealed debts to family or co-workers, and pressured people who didn't owe money.

Spitzer, the state attorney general, noted that his office has taken collectors to court, most recently targeting JBC & Associates, a New Jersey-based company that collects on bounced checks it buys from bankrupt retailers. Consumers complained that JBC pressed them for money on checks that had already been paid.

Consumer advocates say that abuses are rising because of insufficient penalties. Low fines give collectors little incentive to end harassment, or even to make sure they have a legitimate debt, they say.

One industry group responded that existing regulations hamper the collection of legitimate debts, raising costs for nondebtors who wind up footing the bill.

"A collector is subject to all kinds of lawsuits if they do something wrong," said Lynn Goldberg, president of the New York State Collectors Association in New York City.

Under federal debtor protection law, consumers who show wrongdoing by a hired collection agency can collect a $1,000 penalty plus attorney fees.

However, consumer complaints to regulators are booming, with gripes to the Federal Trade Commission up fourfold since 2002.

Spitzer said he would push lawmakers to expand the state's collection law and set a $1,000 penalty for violations, matching the federal penalty. The law prohibits false threats, harassment and other abusive tactics by collectors, including original creditors like banks.

"We have to stop people from dunning individuals who have not in fact violated their debt obligations," he said.

Spitzer said he favors allowing individual consumers to bring their own action against collectors - a so-called "private right of action." Under present law, state or county authorities must bring an action against a collector.

A national consumer group applauded Spitzer's proposal. "That would expand consumer resources substantially," said Robert J. Hobbs, deputy director of the National Consumer Law Center in Boston. "I think New York has suffered from not having a private right of action." The expanded penalty may encourage more lawyers to represent debtors, who frequently have difficulty getting a lawyer, he said.

Hobbs added that New York should consider adding injunction power for private lawsuits, available in some other states, to allow consumers to halt abusive collection tactics.

Goldberg of the collectors association blamed debt buyers, who purchase sold-off debts, for the upsurge in consumer complaints that he has seen. Debt buyers don't face oversight from clients as do agencies that are hired by banks or other creditors.

Spitzer agreed. "There is a key link between sold-off debt and illegal and abusive practices," his statement said.

e-mail: fwilliams@buffnews.com