They say there are two certainties in life: Paying taxes and well, you know about the second certainty. There is also a certainty for companies that are responsible for collecting outstanding debts for original creditors.
By impersonating the IRS, a debt collection agency can motivate a consumer into taking swift action to settle an outstanding credit card or personal loan balance.
Fortunately, a federal consumer protection law includes a provision that forbids third party debt collectors from issuing false statements of any kind.
How a Consumer Protection Law Defines False Statements
Before 1977, consumers were at the legal mercy of over the top bill collectors that used harassment and intimidation as powerful debt collection tools. The passage of the Fair Debt Collection Practices Act (FDCPA) changed all of that by outlawing overly aggressive debt collection tactics. Under the FDCPA, a bill collector like CMRE Financial Services, Inc. is not allowed to call you repeatedly throughout the day. The company is also barred from making false statements regarding your debt.
Impersonating another organization represents one of the most effective ways for a debt collection agency to motivate a consumer to take action on a delinquent credit card or personal loan balance. Since the IRS instills fear and anxiety into most consumers, acting as the federal tax collection entity typically sets the wheels of debt collection into motion. However, the FDCPA prohibits third party debt collectors from impersonating the IRS or any other organization for that matter. A company such as CMRE financial Services, Inc. cannot imitate an attorney or a law enforcement agency as well.
Must Make a “Material” Connection to a False Statement
The FDCPA outlaws a long list of overly aggressive debt collection tactics, as well as more subtle debt collection techniques such as issuing false statements. For false statement cases, consumers not only have to prove a debt collection agency made false statements, they also have to demonstrate the false statements had a “material” impact on the ability to evaluate different personal financial options. In other words, you have to show civil court judge that the false statements issued by a third party debt collector adversely influenced your personal financial decision-making process.
Are You Entitled to Monetary Damages?
According to the FDCPA, consumers have the right to seek statutory and actual damages for one or more violations of the federal consumer protection law. Actual damages cover the costs associated with physical and/or emotional duress symptoms. Physical symptoms like high blood pressure and severely twitching muscles can result because of the deception used by a bill collector.
Work with an FDCPA Attorney
To prove a debt collection agency caused you to suffer from physical distress, you need to have a persuasive FDCPA lawyer in your corner. Your attorney will collect and present the evidence required to move your case forward in a civil court. Evidence to present includes medical documentation, as well as the testimony given by credentialed healthcare professionals. Most FDCPA attorneys encourage new clients to schedule free initial consultation to discover the most effective legal strategy to fight back against a deceptive third party debt collector.
*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 CMRE Financial Services, Inc., or any other third-party collection agency, you may not be entitled to compensation.