Falling behind on bills has put you on shaky financial ground. From trying to juggle multiple credit accounts to paying an extraordinary amount of interest each month, you find it impossible to tread financial water.
To make matters worse, a debt collection agency has called you at home to discuss your outstanding debt. Not to be deterred by a federal consumer protection law, the same third party debt collector has reached out to a family member to discuss your financial obligation.
Bill collectors resort to contacting third parties regarding consumer debts because of the lucrative nature of the debt collection business. The decades old practice is an attempt to shame consumers into taking care of delinquent credit card and personal loan balances.
Fortunately for consumers, a federal consumer protection law prohibits debt collection agencies from contacting third parties regarding consumer debts.
How a Federal Law Protects You
For decades, third party debt collectors were able to use overly aggressive debt collection tactics to force consumers to pay off debts. On September 20, 1977, the United States Congress passed the Fair Debt Collection Practices Act (FDCPA) to counter harassing debt collection techniques.
The federal consumer protection law prohibits bill collectors from threatening consumers in any way. In addition, the FDCPA makes it illegal for debt collection agencies to contact third parties to discuss consumer debts. The third party provision of the FDCPA clearly outlaws the practice of bill collectors discussing consumer debts with third parties.
This means a representative from Credence Resources Management, LLC cannot contact a friend, a neighbor, or a family member to discuss an outstanding credit card or a personal loan balance.
Even a vague reference to a debt you owe is considered outside the legal boundary lines. If Credence Resources Management, LLC has contacted a third party regarding your debt, you should speak with a licensed FDCPA attorney to determine the best course of legal action.
Other Third Party Violations of the FDCPA
For building a case against Credence Resources, LLC to take to a civil court, you need to prove a debt collection agency contacted a third party regarding your debt.
Third party debt collectors are typically relentless in hounding consumers, which means that you can expect a bill collector to keep calling the third parties that you know. The key is to record the phone conversations or make a copy of a letter sent to a third party.
Your consumer protection lawyer will decide if there is enough evidence to file a claim against Credence Resources Management, LLC.
With plenty of evidence, you can file a claim seeking statutory damages for one or more violations of the FDCPA. Statutory damages represent a one-time financial penalty that cannot exceed $1,000. You also have the right under the FDCPA to recover attorney fees, which can run into the thousands of dollars for an FDCPA case.
Fight Back with an FDCPA Lawyer
You can expect Credence Resources Management, LLC to come to court with a highly skilled team of attorneys. Make sure you bring an experienced FDCPA into the legal fray to balance the scale of justice. Schedule an initial consultation today with an accomplished FDCPA attorney.
*Disclaimer: The content of this article serves only to provide information and should not be construed as legal advice. If you file a claim against Credence Resources Management, LLC or any other third-party collection agency, you may not be entitled to compensation.