If you have fallen behind on your bills, you understand the frustration caused by trying to play financial catch up. Frustration is the least of your worries when you discover a letter sent by a debt collection agency demanding immediate payment on an outstanding credit card or personal loan account.
You begin to feel overwhelmed by stress and anxiety, which becomes much worse when the third party debt collector makes false statements regarding your debt.
Did Audit Systems, Inc. make false statements regarding your debt? If so, you should know a groundbreaking federal consumer protection law forbids bill collectors from issuing false statements.
What False Statements Can a Debt Collection Agency Make?
Written into law in response to mounting consumer pressure, the Fair Debt Collection Practices Act (FDCPA) makes it illegal for third party debt collectors to engage in overly aggressive debt collection practices. A bill collector such as Audit Systems, Inc. is not allowed to issue threats in an attempt to intimidate you into taking action.
The company cannot threaten you with bodily harm, as well as threaten to seize private property to settle a delinquent credit card or personal loan balance. Federal lawmakers also added a provision in the FDCPA that outlaws false statements.
A common tactics used by some debt collection agencies is to misrepresent what a consumer owes on a personal debt. If you receive a call from a third party dent collector and the representative on the other end of the line claims you owe a certain amount of money, make sure to confirm what you owe by referring to the meticulous personal finance records you have maintained for years.
You do not have to tolerate a bill collector claiming to have contacted a third party regarding your debt. This is an effective debt collection tactic because it shames some consumers into paying off personal debts.
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What to Do If Scott & Associates Crosses the Legal Line
Proving a company made false statements regarding your debt requires documentation of the alleged false statements. However, a 2018 Eighth Circuit court ruling added another stipulation for the false statements provision of the FDCPA.
The court ruling stated consumers must make a direct connection between the false statements made by a bill collector and the ability to properly evaluate every financial option to address an outstanding credit card or personal loan account.
In other words, there must be a material connection between the false statements issued by a debt collection agency and the decisions you made regarding personal finances.
Do You Qualify for Actual Damages?
Sometimes, the deceptive actions taken by a third party debt collector can cause physical and/or emotional distress. Fortunately, the United States Congress granted consumers the right to file claims in civil courts that seek actual damages for the pain and suffering caused by physical and/or emotional duress symptoms.
Physical distress symptoms can include the onset of migraine headaches and the presence of lingering skin rashes.
Take immediate action if you have endured the false statements made by Audit Systems, Inc. regarding your debt. A licensed consumer protection lawyer who handles FDCPA cases should schedule an initial consultation to see if there is enough evidence to warrant the filing of a lawsuit.
Additional Reading
*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 Audit Systems, Inc., or any other third-party collection agency, you may not be entitled to compensation.