What Types of Damages Are Involved in an FDCPA Claim?

General Rule: An FDCPA claim involves statutory damages (up to $1,000), actual damages (e.g., any loss you suffer) and court costs (including attorney fees).

If your debt is with a collection agency, you may realize it’s a different experience than when you were making payments to your original creditor. Debt collectors have a reputation for being aggressive and engaging in harassing and deceptive behavior.

However, the Fair Debt Collection Practices Act (FDCPA) is a law that can hold debt collectors accountable. This federal law prohibits many forms of harassment, deception and abuse. The ultimate goal of this law is to make sure that debt collectors are treating consumers fairly.

When this does not happen there is action you can take as a consumer. Often for ongoing and impactful violations, a consumer will file a claim under the FDCPA. If guilty, a court will hold a debt collector responsible for certain damages. This article will provide information on FDCPA claims and the type of damages involved.

Filing a Lawsuit under the FDCPA

You can file a lawsuit against a debt collector for a violation of the FDCPA. The three primary requirements are as follows:

• The statute of limitations has not expired (file a lawsuit 1 year from the violation or less)
• The violator is a third-party debt collector, not the original creditor
• The debt involved is personal (e.g., credit cards, student loans, etc.) not business-related

If you meet these requirements you can file a lawsuit for a violation of the FDCPA. There are several different ways a debt collector can violate your rights under the FDCPA. Primarily, violations involve harassment, deception and other abusive debt collection practices.

Specific Damages under the FDCPA

If a consumer brings an FDCPA claim the court must make a couple of determinations. The first part of the process is to determine whether a debt collector is guilty of the alleged FDCPA violation. If they are and the violation is ongoing they can issue injunctive relief. Injunctive relief is when a court orders a debt collector to stop doing something.

In addition, if a debt collector is guilty a court must determine what damages to issue against them. Here are some of the damages a court may assess against a debt collector:

Statutory Damages

The award of statutory damages is automatic if a court finds a debt collector guilty. Many laws have statutory damages and the law itself specifies the amount of damages a court can award. Under the FDCPA, a court can issue up to $1,000 in statutory damages.

This is the minimum compensation a consumer will receive. You do not need to prove anything beyond their guilt for statutory damages.

Real Damages

These are damages that occurred to you and that you can prove. To obtain real damages you must prove that you suffered damages and that those damages were the direct result of the debt collector’s violation.

Here are some examples of real damages that a court may award for an FDCPA violation:

• Lost Wages. In certain extreme cases, you may lose your job because of a debt collector’s violation. For instance, your employer may fire you because they received excessive calls from a debt collector.
• Illegal Charges. A debt collector can only charge what was allowed in the agreement with the original creditor. Any additional charges or interest fees are illegal.
• Physical Suffering. Abusive debt collector actions can lead to severe stress and anxiety. This can lead to further physical ailments. If you can provide evidence that your physical ailments stem from the debt collection violation, a court may award damages.
• Emotional Harm. If you can prove that a debt collector’s actions impacted your emotional well-being, a court may compensate you for this as well.
• Miscellaneous Costs. There are other costs that you may incur due to an FDCPA violation. For instance, if a debt collector wrongfully sues you, you may have costs to have an attorney represent you in that lawsuit.

Punitive Damages

A court awards these damages for severe and intentional violations of the FDCPA.

Court Costs

The FDCPA has a fee-shifting provision. That means if a debt collector is guilty of a violation, they are responsible for your court costs and reasonable attorney fees.

Conclusion

It’s important to hold debt collectors accountable for their violations. This is especially true if you suffer any loss or damages as a result of these violations.

Now that you understand the types of damages involved, consider whether you should file an FDCPA claim. Of course, if you are unsure or have questions, seek a consultation with an FDCPA attorney. They can help you make an informed decision on your best course of action.