Debt collection agencies must adhere to a clearly defined set of guidelines when chasing down consumers to take care of outstanding debts. A third party debt collector like Monarch Recovery Management, Inc. must refrain from using overly aggressive debt collection tactics. The company is also barred from making false statements regarding your debt. Did Monarch Recovery Management, Inc. make false statements? If so, you might be entitled to just compensation under a landmark federal law.
What False Statements Could Debt Collectors Make?
Passed into federal law by the United States Congress, the Fair Debt Collection Practices Act (FDCPA) makes it illegal for bill collectors to harass and intimidate consumers. The FDCPA prohibits companies from threatening to seize private property, as well as threatening to contact third parties regarding delinquent credit card and personal loan balances. Moreover, a third party debt collector such as Monarch Recovery Management, Inc. cannot make false statements that deceive you into taking a course of action you would not have taken.
One of the most effective acts of deceit when it comes to collecting consumer debts is for a company to report inaccurate information on a consumer’s credit report. As the most important financial document that defines your credit worthiness, your credit score can plummet like a rock if a bill collector sends all three of the three primary bureaus wrong financial information. A debt collection agency might falsely tell a credit reporting bureau that you defaulted on a bank loan. The company can also lie about how much money you owe on the credit account.
How to Respond to False Statements
Over the past few years, several court decisions have placed more of a burden on consumers to prove a third party debt collector made a false statement. In addition to presenting evidence that confirms false statements were made, you also have to show the false statements were “material.” The Eighth Circuit court set the legal precedent for establishing a “material” connection between a bill collector’s false statements and your ability to make proper personal finance decisions. A licensed FDCPA lawyer will determine whether the false statements issued by a debt collection agency were “material.”
Are You Entitled to Monetary Damages?
At the very least, the false statements made by a third party debt collector might entitle you to receive statutory damages. The United States Congress created an FDCPA provision that awards qualified consumers a one-time financial reward of $1,000 for all FDCPA violations. This means you do not have to prove a “material” connection” All you have to do is submit enough evidence that confirms Monarch Recovery Management, Inc. violated one or more provisions of the FDCPA. To win an award for actual damages, your FDCPA attorney will have to convince a civil court judge that the false statements negatively affected the ability for you to handle your personal finances.
Consult with an Experienced FDCPA Lawyer
Making a bill collector pay for making false statements requires the legal expertise of an experienced FDCPA attorney. Most consumer protection lawyers schedule free initial consultations with clients to determine the best course of legal action.
*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 Monarch Recovery Management, Inc., or any other third-party collection agency, you may not be entitled to compensation.