Debt collection agencies such as Commonwealth Financial system have two ways to collect debts for original creditors. First, a third party debt collector can work directly for an original creditor and receive a healthy percentage of the total amount collected from a consumer.
For example, a bill collector working for an original creditor in an attempt to recover a $10,000 debt might receive $2,000 for collecting the entire amount due. Second, a debt collection agency can purchase the entire debt from an original creditor and then keep all the money collected from a consumer.
The incredible amount of money third party debt collectors earn is enough motivation to implement aggressive debt collection practices.
For years, bill collectors ran roughshod over consumers by aggressively pursuing the payment of credit card and personal loan balances. In response to a rapidly growing number of consumer complaints, the United States Congress passed a revolutionary consumer protection law.
How Federal Law Protects Consumers
In 1977, Congress passed the Fair Debt Collection Practices Act (FDCPA), which gives consumers numerous legal rights to fight back against third party debt collectors like Commonwealth Financial System.
The FDCPA makes it illegal for bill collectors to issue threats or use abusive language in attempts to coerce consumers into paying off delinquent debts.
Moreover, the landmark federal consumer protection law prohibits the implementation of deceptive debt collection techniques, including impersonating a law enforcement agency and claiming a consumer can go to jail for not taking care of a debt.
In addition to making certain debt collection practices illegal, the FDCPA also provides consumers with several methods for getting debt collection agencies off their backs.
You can send a cease and desist letter to stop letters and phone calls, as well as invoke the statute of limitations set in your state for the collection of outstanding consumer debts. Consumers also have the right to file civil lawsuits to seek monetary damages for a wide variety of illegal debt collection agency tactics.
Preparing a Claim against Commonwealth Financial System
How to prepare for a civil lawsuit against Commonwealth Financial system starts by speaking with a licensed consumer protection lawyer that has successfully litigated many FDCPA cases.
Your attorney will carefully examine your case to determine whether filing a lawsuit is the way to go or if you should negotiate a settlement to pay off the debt for a fraction of the entire amount due.
When you file a claim against Commonwealth Financial System, you will need to submit to your lawyer documents that prove the connection between physical and/or emotional distress and the illegal practices use by the debt collection agency.
Documents include medical bills that itemize the symptoms of your health issues, as well as the treatment regimen recommended to alleviate pain and suffering. Your attorney might also request phone records to establish a link between the calls and your ailments.
Consumers have the right to seek monetary damages for FDCPA violations, and your lawyer will determine how much to sue for in a civil court in addition to the one time statutory penalty of $1,000.
Never allow a third party debt collector get away with illegal debt collection practices. Speak with an experienced FDCPA lawyer today to ensure you receive every right granted by the powerful federal law.
*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Commonwealth Financial System or any other third-party collection agency, you may not be entitled to any compensation.