What to Do if You Need to Sue a Debt Collector
If you're in debt, you may be worried about getting sued by a debt collector for not paying your debt. But did you know that there are several instances in which you can legally sue them instead?
With the caveat that I'm not a lawyer, and am not giving any legal advice to you, here are the facts:
According to the Fair Debt Collection Practices Act, or FDCPA, there are specific practices that debt collectors cannot engage in. The FDCPA states that you may have the right to sue a debt collector in the event that they do any of these forbidden practices.
What are the forbidden practices that debt collectors may not engage in?
The first of these practices is harassment. The FDCPA defines harassment as using "threats of violence or harm", annoying somebody through repeated telephone calls, or using obscene language.
The second forbidden practice is using false statements to collect on a debt. The FDCPA prevents debt collectors from telling lies in order to collect on a debt. This includes falsely presenting themselves as government agents or attorneys, lying about how much is owed, or claiming that your inability to repay your debt makes you a criminal. Debt collections agents have a long history of being dishonest if it makes them easier to collect on a debt.
Debt collectors also may not make public the fact that you owe a debt. This includes contacting other people about your debt, publishing a list of names of people who have outstanding debts, or contacting you via postcard. The only instance in which a debt collection agency can contact other people about your debt is in order to find out your current address, phone number, or place of employment.
So, what are the consequences if a debt collector does break the rules and engage in one of these forbidden practices?
Your first action should be to inform them that you are aware of your rights under the FDCPA, and that they must cease their illegal actions. Most of the time, this will resolve the problem without you having to resort to legal action.
If that doesn't do the trick, however, you still have up to a year from the time they violated the FDCPA to sue the debt collector in state or Federal court. You are allowed to sue them for any demonstrable damages that you suffered because of their illegal practices, such as lost wages or medical bills.
Even if you can't prove that they caused any actual damages, the judge can still require that they pay you up to $1000. In addition, the judge can require them to reimburse you for your attorney fees.
Keep in mind that just because the debt collector violated the law in trying to collect your debt, the debt does not just disappear if you actually owe it. Their violation of the law only entitles you to sue them under the FDCPA.
Be aware of the law, and your legal rights. If anyone breaks the law and violates your rights, be sure to use the law to protect your rights.
With the caveat that I'm not a lawyer, and am not giving any legal advice to you, here are the facts:
According to the Fair Debt Collection Practices Act, or FDCPA, there are specific practices that debt collectors cannot engage in. The FDCPA states that you may have the right to sue a debt collector in the event that they do any of these forbidden practices.
What are the forbidden practices that debt collectors may not engage in?
The first of these practices is harassment. The FDCPA defines harassment as using "threats of violence or harm", annoying somebody through repeated telephone calls, or using obscene language.
The second forbidden practice is using false statements to collect on a debt. The FDCPA prevents debt collectors from telling lies in order to collect on a debt. This includes falsely presenting themselves as government agents or attorneys, lying about how much is owed, or claiming that your inability to repay your debt makes you a criminal. Debt collections agents have a long history of being dishonest if it makes them easier to collect on a debt.
Debt collectors also may not make public the fact that you owe a debt. This includes contacting other people about your debt, publishing a list of names of people who have outstanding debts, or contacting you via postcard. The only instance in which a debt collection agency can contact other people about your debt is in order to find out your current address, phone number, or place of employment.
So, what are the consequences if a debt collector does break the rules and engage in one of these forbidden practices?
Your first action should be to inform them that you are aware of your rights under the FDCPA, and that they must cease their illegal actions. Most of the time, this will resolve the problem without you having to resort to legal action.
If that doesn't do the trick, however, you still have up to a year from the time they violated the FDCPA to sue the debt collector in state or Federal court. You are allowed to sue them for any demonstrable damages that you suffered because of their illegal practices, such as lost wages or medical bills.
Even if you can't prove that they caused any actual damages, the judge can still require that they pay you up to $1000. In addition, the judge can require them to reimburse you for your attorney fees.
Keep in mind that just because the debt collector violated the law in trying to collect your debt, the debt does not just disappear if you actually owe it. Their violation of the law only entitles you to sue them under the FDCPA.
Be aware of the law, and your legal rights. If anyone breaks the law and violates your rights, be sure to use the law to protect your rights.
About the Author:
Sean Payne is a personal finance and debt reduction enthusiast. After getting out of debt himself, he spent over a decade developing an effective strategy for getting out of debt. Check out Sean's fascinating e-course about how to sue debt collectors and get out of debt, quickly and easily.