Despite the passage of a monumental federal consumer protection law, far too many debt collection agencies continue to harass and intimidate consumers into paying off delinquent credit card and personal loan balances.
Why do so many companies refuse to comply with the Fair Debt Collection Practices Act (FDCPA)? The answer is the incredible amount of money third party debt collectors earn for collecting outstanding consumer debts.
Bill collectors have two options when it comes to making money off consumer debts. First, the companies can work on a commission established by an original creditor. A much more lucrative relationship is when a third party debt collector purchases a debt from an original creditor.
Some debt purchases can reap profits for bill collectors that exceed 100%. Did Ability Recovery Services ignore the FDCPA by making false statements regarding your debt? If so, then you should speak with a licensed consumer protection lawyer.
Types of False Statements Banned by the FDCPA
If a debt collection agency was compared to a magician, the company would have several tricks up its sleeve that includes issuing one or more false statements. One of the most daring false statements made by some third party debt collectors involves the issuing of threats.
It is considered illegal under the FDCPA for a bill collector like Ability Recovery Services to threaten you with a lawsuit. Although the company can file a lawsuit against you, it cannot threaten to initiate the lawsuit.
Bill collectors are also prohibited from making the false claim that they can garnish consumer wages. A judge must issue a court order for a wage garnishment plan to go into effect.
What to Do If Ability Recovery Services Makes a False Statement Regarding Your Debt
Proving a debt collection agency made one or more false statements requires you to submit compelling evidence during a civil court hearing. You can submit a photocopied letter that clearly displays the false statement made by a third party debt collector.
If you live in a one-party consent state that requires just one person to approve the tape recording of a phone call, you can tape record a phone call conducted with a bill collector and present the tape as evidence in a civil court.
Just remember recent changes in the interpretation of the false statements provision requires you to make a “material” connection between the false statements you received and the ability for you to make sound financial decisions.
How to File a Claim Seeking Monetary Damages
The FDCPA gives consumers two options for seeking monetary damages for FDCPA violations. Statutory damages cover every FDCPA violation committed by the same bill collector. Unlike statutory damages that cannot exceed $1,000, actual damages are not capped by the FDCPA.
Actual damages cover the costs associated with the pain and suffering caused by illegal debt collection tactics. If you suffer from physical and/or emotional distress symptoms and the symptoms were triggered by the false statements made by a debt collection, you might be eligible to receive actual damages for your pain and suffering.
Schedule a free initial consultation with a licensed FDCPA attorney to learn more about how the landmark federal consumer protection law protects you.
*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 Ability Recovery Services, or any other third-party collection agency, you may not be entitled to compensation.