Why does it seem like debt collection agencies come after consumers harder than the original creditors? The answer is third party debt collectors either earn incredibly high commissions or the companies purchase outstanding consumer debts for just a fraction of what was initially owed. With that much money on the line, it is not surprising to learn that far too many bill collectors cross the legal line by violating one or more provisions written into a longstanding federal consumer protection law.
On September 20, 1977, the United States Congress wrote the Fair Debt Collection Practices Act (FDCPA) into federal law. Under the FDCPA, a debt collection agency like IMC Credit Services, LLC is prohibited from issuing threats of any kind, as well as harass you by calling you deep into the night. Congress also made it illegal for a third party debt collector to make false statements regarding your debt.
Examples of False Statements
Bill collectors make false statements in several different ways. One of the most common types of false statements is claiming that a consumer debt has been or will be discharged in bankruptcy. Since the record of a bankruptcy filing lasts for years on your credit report, misleading you into believing your debt has been or will be discharged in bankruptcy is a powerful motivator. Threatening to file a lawsuit against you or threatening to garnish your wages violates two provisions of the FDCPA. According to the groundbreaking consumer protection law, bill collectors are forbidden from issuing threats of any kind. In addition, a company that makes either type of threat is also making a false statement.
How to Handle False Statements
Evidence is everything when proving a debt collection agency made one or more false statements. You should keep every letter you receive from a third party debt collector such as IMC Credit Services, LLC. Documentation of false statements gives you the legal advantage over a company paid to collect outstanding consumer credit card and personal loan debts. If you live in a one-party consent state, you can tape record every phone calls you have with a bill collector. One-party consent means only you have to agree to have the phone calls made by a debt collection agency tape recorded.
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Filing a Claim against IMC Credit Services, LLC
In 2018, the Eighth Circuit court issued a ruling that makes it more difficult for consumers to win actual damages for the pain and suffering caused by a bill collector. The FDCPA gives consumers the right to seek statutory damages for every violation of the FDCPA committed by the same debt collection agency. However, to win a judgment awarding actual damages, the Eighth Circuit court declared consumers must show the false statements were “material.” In other words, the court ruled that not only to you have to prove the existence of false statements, you also have to demonstrate the false statements negatively impacted your ability to make sound financial decisions.
Do not let a third party debt collector get away with making false statements. Schedule a free initial consultation today with a licensed consumer protection lawyer who specializes in handling FDCPA cases.
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 IMC Credit Services, LLC, or any other third-party collection agency, you may not be entitled to compensation.