According to a landmark federal consumer protection law, debt collection agencies must follow a clearly defined set of strict guidelines when it comes to collecting outstanding consumer debts. A third party debt collector is prohibited from harassing and intimidating you into paying off a delinquent credit card or personal loan balance. The same federal consumer protection law also outlaws the once common practice of making false statements.
Did Glass Mountain Capital, LLC make false statements regarding your debt? If so, you might be covered by the deception provision of the Fair Debt Collection Practices Act (FDCPA)
What Type of False Statements Can Bill Collectors Make?
Although the FDCPA bans the once legal tactic of using deception to trick consumers into taking an action they would otherwise not take, there are several false statements that appear in court documents more often than other types of false statements. A debt collection agency such as Glass Mountain Capital, LLC cannot tell you that you are on the financial hook for a debt you are not obligated to pay off. Some third party debt collectors bank on consumer lack of knowledge by attempting to collect on debts that do not exist.
Bill collectors are also not allowed to threaten to sue consumers for outstanding debts, nor can the companies threaten to garnish consumer wages. However, the FDCPA permits bill collectors to file lawsuits and garnish wages. It is just the companies cannot threaten to take legal action of any kind. Threats of any kind are also considered illegal under another provision of the FDCPA.
How to Proceed If a Debt Collection Agency Makes False Statements
Until 2018, the FDCPA made it clear that false statements of any kind were illegal. After several court rulings in 2018, consumers now must not only prove a debt collection agency made false statements, they also must prove the false statements were “material” to how consumers made financial decisions. This means that if Glass Mountain Capital, LLC made one or more false statements regarding your debt, you need to demonstrate the company violated the FDCPA and caused you to take measures that you would have otherwise not taken.
Are You Entitled to Just Compensation?
Having to deal with the false statements made by a third party debt collector can cause undue stress and anxiety. Fortunately, the United States Congress included a punitive provision within the FDCPA that grants consumers the right to file claims seeking just compensation. Statutory damages, which cannot exceed $1,000, cover every violation of the federal consumer protection law. This means you can win a judgment up to $1,000 for all of the FDCPA violations committed by a bill collector, not $1,000 for each FDCPA violation.
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An FDCPA Attorney Can Help
The 2018 court rulings that added the “material” requirement for false statement cases makes it more urgent than ever for you to speak with a licensed FDCPA lawyer. Your FDCPA attorney will determine whether the false statements made by a bill collector caused you to make one or more negative financial decisions. In addition, your lawyer will collect the evidence required to move your case forward in a civil court.
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 Glass Mountain Capital, LLC, or any other third-party collection agency, you may not be entitled to compensation.