Federal and state law gives you several protections against illegal conduct on the part of debt collectors or anyone else who is part of the debt process. There are many prohibited practices, including misrepresentations about your debt and harassing you to get you to pay them. There are consequences for a debt collector when they break these rules, and they may be liable to you in a lawsuit if they violate the laws that govern them.
You have legal recourse to file a court case against them. However, you do not have to worry about how you will afford a lawyer to handle your case. You will not have to pay anything out of your pocket, and an attorney may even get paid by the defendant if you win your case. The money will never come directly from you.
The best way to learn whether you have a potential legal cause of action is to consult with a consumer debt protection attorney, and there is never any fee for this initial consultation. An attorney can explain the law, and they may help you stop any illegal conduct that is victimizing you. FDCPA lawyer safeguard your rights against unlawful debt collection practices. They are well-versed in the laws and regulations governing debt collection, allowing them to advocate for you and protect your rights.
The Legal Framework That Governs Debt Collectors
There are limits to what a debt collector can do when pursuing you for payment. Although debt collectors are allowed to do their job, they must do it within the confines of the law. When they contact you, they must identify themselves and cannot make any misrepresentations whatsoever.
Debt collectors are also not allowed to threaten or harass you. They cannot call you repeatedly; if you tell them to stop contacting you, they must abide by your wishes. Debt collectors are not allowed to reveal the existence of your debt to a third party, meaning they cannot call your boss or friends to shame you into paying them.
However, many debt collectors intentionally violate the law because they can make a substantial profit when they purchase debt and pressure you into paying it. Debt collectors hope that you are uninformed about your rights and the law and that you will do whatever they say out of fear.
These actions are illegal under federal and state law, and you can file a lawsuit if the debt collector has broken the law. You do not even have to prove that they had any intent to violate the law; debt collectors can owe you money solely by virtue of the fact that they broke the law.
Your Damages in a Successful FDCPA Lawsuit
If you file and win a lawsuit under the Fair Debt Collection Practices Act, you may have the right to the following in compensation:
- A one-time payment of up to $1,000 that you can receive, even if you do not suffer any actual damages from the debt collector's actions
- Damages for emotional distress if the debt collector's actions harmed your mental health
- Lost earnings, if your career or ability to earn a living was harmed by what the debt collector did
- Medical costs, if you needed treatment because of how you suffered
While federal law does not allow you to receive punitive damages, you may be eligible for them if you file a lawsuit under state law. Your consumer debt protection attorney will advise when to file a lawsuit.
Hiring a Consumer Protection Lawyer Does Not Make Your Financial Situation Worse
Many people who seek the help of a consumer debt protection lawyer are already financially strapped. Chances are they are contacting a consumer debt protection lawyer precisely because they owe money and do not have the resources to pay it back. They are experiencing harassment and misconduct at the hands of debt collectors, and they want to make it stop. In many cases, a person will be nearing bankruptcy and will not have the liquid assets to write a check to anyone.
However, you should not despair and think you must put up with illegal conduct because you do not have the money to afford a consumer debt protection attorney. You can and should take legal action against debt collectors when they have broken the law. Public policy demands that you get legal help from an experienced attorney and should be on a level playing field with the debt collector.
If the debt collector resorts to abusive or harassing tactics such as constant phone calls, threats, or intimidation, consumer debt protection lawyers can intervene to end these illegal practices. They can send cease and desist letters to the debt collectors, demanding they stop communicating with you. If the debt collector continues to harass you, these lawyers can take legal action to seek damages on your behalf.
You Do Not Have to Pay for an Initial Consultation
A consumer debt protection lawyer works in the same manner as a personal injury lawyer. In many cases where you are seeking money from another party, your obligation to pay your lawyer only occurs when you receive some form of funds for your case. This type of legal representation is a contingency fee, meaning your lawyer only gets paid if and when you win your case.
You will schedule an initial consultation when contacting a consumer debt protection lawyer, and you do not have to pay anything whatsoever for this conversation. Consultations are free and vehicles for you to decide if you want to work with the attorney and for the lawyer to determine whether they wish to take your case. If you do not hire a consumer debt protection lawyer, you can walk away without paying them a penny.
You Pay Nothing for a Consumer Debt Protection Lawyer During Your Case
Even if you decide to hire a consumer debt protection lawyer, you will still not have to pay them anything from your own pocket. Other types of lawyers get paid by the hour, and nearly every type of attorney who does not seek money on behalf of their clients will ask for a retainer against the hourly charges that they will incur on your behalf. The retainer may also pay expenses that the lawyer advances money for along the way.
When hiring a consumer debt protection lawyer, you do not have to worry about these things. The attorney only receives money when you win your case. If you do not win your case, you will not receive a large bill at the end, and your lawyer will not receive any compensation for all of the time they worked on your case.
Your Consumer Debt Protection Lawyer Only Gets Paid if You Win
In the standard debt protection case, a contingency fee means the attorney gets paid a percentage of the money you recover from the responsible party. They may receive roughly one-third of your financial recovery if your case reaches a settlement and slightly more if you win at trial. The money to compensate the lawyer comes from the proceeds of your case and gets deducted from your settlement before going into your account. Even though they will receive a percentage from your settlement or jury award, hiring a lawyer is still undoubtedly better for your financial circumstances.
The Debt Collector May Even Need to Pay Your Attorney
Besides not having to pay anything out of your pocket to hire a consumer debt protection lawyer, there is other good news for you. Your ability to file a lawsuit against the debt collector (or other financial entity that took advantage of you) comes from federal and state law. You have a specific private right of action that allows you to file a lawsuit. For example, if debt collectors harass you, the Fair Debt Collection Practices Act gives you the consumer protection right to take your case against them to court. Some laws exist at the state level that also prohibit these types of behavior.
These statutes specifically provide that the debt collector (or other defendant named in the lawsuit) must pay your attorney's fees and court costs. Specifically, the FDCPA states that the defendant will need to pay you:
"in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney's fee as determined by the court."
The Law Makes Attorney's Fees and Costs Mandatory if You Win
No leeway in the statute makes it optional for a judge to order the defendant to pay you these court costs. The defendant will become liable to pay for your attorney's fees and expenses when they lose your case. They will even have an obligation to pay for your attorney's fees if you settle your case instead of taking it to trial and winning. Thus, you will keep all your settlement proceeds instead of paying your attorney one-third. You have no financial consequences for hiring a consumer debt protection attorney.
Still, it is best to be careful when you file a lawsuit against the debt collector. The FDCPA provides that you may be liable to pay them attorney's fees if you filed your lawsuit in bad faith or for harassment. When you hire a consumer debt protection lawyer, they will ensure that you file the case in good faith only after reviewing the specific facts of your case.
In addition, if you file a lawsuit under state law, many jurisdictions have a similar provision in their law. If you win a state law case against a debt collector, your attorney will only get paid by the debt collector and not from the proceeds of your case. Thus, you can keep everything you get and risk nothing from your pocket by hiring a lawyer to take action against the debt collector.
Other federal laws provide consumer protection to people who owe money. For example, the Fair Credit Reporting Act allows you to sue a credit bureau or furnisher of information to your credit report when they break strict laws. The FCRA has a similar provision that requires the defendant to pay your legal costs if you win your case. You will also not have to pay any money out of your pocket for any consumer protection lawsuit.
Note the phrasing of the law in terms of reasonable legal costs. You will not have to worry about paying your consumer debt protection attorney no matter what. The court will assess whether the fees are reasonable based on your attorney's filing. If the court believes that the claimed attorney's costs and expenses are unreasonable, they will slash the amount, and you will not be responsible for paying it. You only need to contact an experienced consumer debt protection attorney and work with them to win your case.
There Is No Risk to You in Hiring a Consumer Debt Protection Lawyer, Call for Your Free Consultation
As you can see, you do not take on any financial risk when you hire a consumer debt protection attorney. On the contrary, a consumer debt protection lawyer can open up the possibility of taking legal action to get justice and accountability when a debt collector has broken the law. You lose nothing if you do not win but gain everything if you do. At a minimum, you should schedule a free initial consultation with a consumer debt protection attorney to learn more about whether you have a potential case against the debt collector. You certainly have nothing to lose; in the best-case scenario, you may get compensation for the harm you have suffered.
Consumer debt protection lawyers are your advocates for defending your rights against illegal debt collection practices. They have the experience to assess the debt's validity, negotiate on your behalf, and take legal action to stop abusive practices. By enlisting the support of a consumer protection attorney, you can have the peace of mind of knowing that they are protecting your rights and that you have a strong ally in your corner.