General Rule: No, this is a clear violation of the Fair Debt Collection Practices Act (FDCPA).
Owing a debt you are struggling to pay is likely already a difficult situation. This is worsened by a collection agency that attempts to add fees and interest you do not owe. What’s even worse is if a collection agency is intentionally trying to deceive you into paying extra.
Collection agencies will often engage in various types of deception. Fortunately, consumers have protection under the Fair Debt Collection Practices Act (FDCPA). This includes protection from debt collectors trying to deceive you into sending payments for more than you owe.
This article will explain how collection agencies attempt to deceive consumers into making unnecessary payments. You will then learn how you can take action to deal with this type of illegal debt collection behavior.
Paying More Than You Owe
It’s not uncommon for a debt collector to attempt to collect more from you than you actually owe. This is a clear violation of the FDCPA. Here are some common examples of a debt collector requesting payment for more than you owe:
- Extra Charges. Sometimes a collection agency will attempt to get you to pay interest and fees that they added after they received your debt. A collection agency cannot add additional charges that were not part of the original agreement.
- Adjusted Balance. Sometimes a collection agency will outright change the balance due. They are relying on you not knowing the amount of debt you owe. Sometimes they will use this higher number to leverage a settlement at the amount of debt you actually owe.
Note: This type of wrongful debt collection is a violation of the FDCPA for third-party debt collectors. Unfortunately, the FDCPA does not apply to the original creditor.
The FDCPA and Deceptive Debt Collection
The FDCPA is a federal law that protects against a variety of deceptive debt collection practices. The FDCPA makes it explicitly illegal to collect money that a consumer does not owe. A collection agency violates the law if it engages in any of the practices outlined in the previous section.
The FDCPA protects against other forms of deception as well. Some other common deceptive tactics a collection agency will use include the following:
- Stating that they are going to take legal action or report you to the credit bureau only to coerce a payment.
- Threaten to take action they do not have the legal authorization to take.
- Pretend to be an attorney or government agency.
- Send collection communications in a manner that looks like it’s part of the legal process.
What Remedies Can I Take If a Collection Agency Is Trying to Collect Money I Do Not Owe?
If a debt collector is trying to collect more than you owe, do not pay them. However, you may have already paid them before you realized it. If that is the case, you have the option to file a lawsuit to get your money back. If your lawsuit is successful a court may award you the following:
- Statutory Damages. The statutory damage amount depends on the language of the law. THe FDCPA provides a statutory damage of up to $1,000.
- Actual Damages. If you made any payments for a debt you did not owe, the court will order the debt collector to pay you back. They must pay any other damages you can prove occurred due to the illegal collection activity.
- Court Costs. This includes attorney fees.
- Punitive Damages. These are additional damages a court may award for intentional and serious violations.
If you have not suffered any loss, the following options may resolve the issue:
- Send a Demand Letter. In writing, detail how a debt collector overcharged you and demand that they adjust your account. In addition, inform the debt collector that additional collection efforts will result in a lawsuit.
- End All Communication. If you want all contact to end, send a cease-and-desist letter.
- Contact a Federal Agency. Submit a complaint to the Federal Trade Commission (FTC). This federal agency enforces the FDCPA. Another option is to submit a complaint to the Consumer Financial Protection Bureau (CFPB).
- Seek Legal Guidance. A consumer rights attorney has years of experience in dealing with illegal debt collection practices. Consider seeking legal counsel to help resolve your situation.
Conclusion
You are responsible for paying your debt and not a cent more. Be aware of how much debt you owe to ensure a collection agency does not take advantage of you.
If you are getting harassed to pay beyond what you owe or already have, you have tools to rectify this illegal behavior. If you have questions about your specific situation, contact a consumer rights attorney today.
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