They say truth is stranger than fiction and in the debt collection business, truth is sometimes a trait that far too many debt collection agencies fail to embrace. Although much of the negative focus on third party debt collectors is about overly aggressive debt collection tactics, the fact remains that deception is also a powerful tool for companies to use against consumers. Did Penn Credit misrepresent themselves? If the answer is yes, then you should take advantage of a groundbreaking federal consumer protection law that makes it illegal for bill collectors to deceive consumers.
On September 20, 1977, the United States Congress wrote the Fair Debt Collection Practices Act (FDCPA) into law. The comprehensive federal consumer protection law forbids debt collection agencies from misrepresenting themselves. Deception is a tactic used to trick consumers into paying off outstanding credit card and personal loan accounts. Penn Credit does not have to misrepresent itself to violate the FDCPA. The company can also be put under the legal spotlight by lying about anything concerning your debt. In addition to banning deceptive debt collection tactics, the FDCPA also makes it illegal for third party debt collectors to implement overly aggressive debt collection practices.
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About Penn Credit
With nearly 200 consumer complaints resolved by the Better Business Bureau (BBB) since 2016, it would seem that Penn Credit does not adhere to the legal principles mandated by the FDCPA. However, the company has received accreditation from the BBB because of the proactive way it settles consumer complaints. Operating out of Harrisburg, Pennsylvania, Penn Credit has spent 32 years in business mostly handling the debt collection efforts pertaining to outstanding consumer credit card and personal loan accounts.
What Constitute Misrepresentation?
According the FDCPA, misrepresentation falls under two broad categories. The first category is impersonating another organization. For example, it is against the law for Penn Credit to impersonate a law enforcement agency. If you have to deal with a bill collector that you catch impersonating a law enforcement agency, politely tell the company it is not against the law to fall behind on bills and then immediately contact a licensed FDCPA attorney. The second category defining misrepresentation are the blatant lies told by bill collectors. Some companies like to lie about how much consumers owe on a delinquent debt. There is also the possibility a debt collection agency like Penn Credit will try to collect a debt you have already paid off.
Seek Justice by Filing a Claim
Not only does the FDCPA ban certain debt collection techniques, the federal consumer protection law gives consumers the right to file claims that seek just compensation for one of more violations of the federal consumer protection law. With a maximum amount awarded of $1,000, statutory damages cover every violation of the FDCPA committed by a third party debt collector.
A Licensed FDCPA Lawyer Can Help
It is one thing to discover Penn Credit violated the FDCPA; it is quite another thing to make the company pay for its legal negligence. If Penn Credit misrepresented themselves, you should work with an experienced FDCPA attorney to seek justice. You attorney might file a claim or decide that contacting your state Attorney General’s office is the most effective way to fight back against the bill collector.
Additional Resources
*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 Penn Credit, or any other third-party collection agency, you may not be entitled to compensation.