General Rule: You may be awarded penalties (up to $1,000 under the FDCPA), damages and the cost of filing a lawsuit.
The debt collection process can be an unpleasant experience. This is especially the case if you have a collection agency that is harassing and abusing you. Some debt collectors will resort to all kinds of unethical tactics to pressure you to pay a debt.
Fortunately, consumers have many protections under the Fair Debt Collection Practices Act (FDCPA). This federal law protects you from different forms of deception, abuse and harassment. If a collection agency violates your right under the FDCPA you can file a claim against them in court.
A successful claim under the FDCPA can stop the illegal activity of a collection agency. A court may also compensate you for a successful claim. The below sections will help you understand the different forms of compensation for a successful FDCPA claim.
Filing an FDCPA Claim
You can file an FDCPA claim against any third-party debt collector. However, you can not file an FDCPA claim against the original creditor. In addition, the FDCPA is only for personal, not business debts. Examples of personal debts include the following:
- Mortgages
- Medical Bills
- Credit Cards
- Student Loans
- Past Due Rent
- Car Loans
- Personal Loans
There are various types of violations a collection agency may commit that can lead you to file a lawsuit. Lawsuits under the FDCPA fall into three main categories:
- Harassment. There are several illegal types of harassment. This may include excessive calls, calling at unusual times and using profane language.
- Deception. A collection may try to deceive you into paying a debt that is more than you owe or not yours at all. They may also make misrepresentations about who they are or who they work for.
- Embarrassment. A collection agency may try to coerce you into making a payment through embarrassment. For example, they may tell others about your debt.
Types of Compensation under the FDCPA
If you file a successful lawsuit against a collection agency you are entitled to certain compensation. What a court awards you depends on the specific facts of your case. Some forms of compensation a court may award you include the following:
Statutory Damages
Statutory damages are for a specific amount set by law. Each law will specify how much in statutory damages a court may require a guilty party to pay. Under the FDCPA, a court may order a penalty against the collection agency up to $1,000.
The award of statutory damages does not require you to prove any damages or harm. The only requirement for statutory damages is that the collection agency violated the FDCPA.
Actual Damages
A court can also award you for any actual damages you suffer. To receive compensation for actual damages, you must provide some proof that the violation caused the damages.
There is a wide range of damages a collection agency may have to compensate you for. Examples of actual damages include the following:
- Unauthorized fees and interest paid to the collection agency
- Loss of wages
- Attorney fees for defense against debt collection lawsuits
- Emotional distress
- Physical suffering
Punitive Damages
This is a special set of damages a court may award if the debt collector’s actions are egregious. For example, a court may award punitive damages if the collection agency knowingly tried to collect on a debt that was not yours.
Court Costs
The FDCPA also allows for the payment of court costs if your lawsuit is successful. This may include filing and other related costs. Specifically, the FDCPA has a fee-shifting provision. This means that if a court finds a collection agency guilty, they are responsible for paying all of your attorney fees.
Note: There may be other claims related to the FDCPA violation. For instance, in some cases, the collection agency may have also violated the Fair Credit Reporting Act (FCRA). Determining other potential violations is when counsel from a licensed attorney is very helpful.
Conclusion
Filing a lawsuit under the FDCPA is an excellent option when you are being harassed by a collection agency. It can stop the illegal behavior and compensate you as well.
If you are unsure if you have a claim under the FDCPA, request a consultation with a consumer rights attorney. They can evaluate your case and let you know if you have a strong claim under the FDCPA.
Additional Resources