Nobody wants to be the victim of a bold-faced lie, but when the lie comes from a debt collection agency, the pain caused by the lie can be both emotional and financial.
Since the start of the debt collection industry, far too many companies have resorted to making false statements regarding consumer debts.
After listening to the protests issued by consumer concerning underhanded debt collection tactics, the United States Congress wrote the Fair Debt Collection Practices Act (FDCPA) into federal consumer law. Under the groundbreaking law, debt third party debt collectors like PMAB no longer can issue false statements regarding consumer debts.
What Constitutes a False Statement?
According to the FDCPA, PMAB is not allowed to make attempts to collect more money than you actually owe on an outstanding credit card or personal loan balance.
The company also cannot demand that you pay off a credit card or a personal loan balance that you have already paid off. For both false statements, a company like PMAB banks on consumer ignorance when it comes to personal financial matters.
The most effective way to protect against false statements regarding how much you owe on a personal debt is to maintain meticulous records of your personal finances.
Another lie told by some debt collection agencies involves impersonating a law firm. By hiding behind the shield of an alleged law firm, a third part debt collector wants you to believe the heat has been turned up for your debt collection case.
When an attorney becomes involved in a debt collection case, it typically means the case is headed towards some type of litigation. Although a few bill collectors are licensed attorneys, the fact remains a vast majority of debt collection agencies have no affiliation with a law firm.
How to Handle the False Statements Made by a Debt Collection Agency
As with other violations of the FDCPA, a violation of the false statements provision of the federal consumer protection law requires your immediate and undivided attention.
In addition to proving a company made false statements regarding your debt, you also have to demonstrate that the false statements negatively affected how you made financial decisions.
A 2018 Circuit Court decision declared consumers must make a “material” connection between one or more false statements and their ability to evaluate all personal financial options.
You Have the Right to Seek Statutory Damages
Congress not only outlawed a long list of deceitful and overly aggressive debt collection practices, it also granted consumers the right to seek statutory damages for one or more violations of the FDCPA.
With a maximum award of $1,000, statutory damages punish the same third party debt collector for every FDCPA violation.
Work with a Licensed FDCPA Lawyer
If PMAB receives a formal complaint from you, the bill collector will utilize a team of accomplished litigators to have your complaint dismissed in a civil court.
This means you need to balance the judicial scale of power by enlisting the help of a licensed federal consumer protection attorney who specializes in handling FDCPA cases.
Most FDCPA lawyers encourage prospective clients to schedule free initial consultations to discuss the specifics of a case.
*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 PMAB, or any other third-party collection agency, you may not be entitled to compensation.