If you believe that you have been a victim of debt collection harassment, it is essential to understand the statute of limitations for FDCPA claims. The Fair Debt Collection Practices Act (FDCPA) is a law that protects consumers from abusive and deceptive practices by debt collectors. However, filing your claim within the specified time frame is necessary to ensure you protect your rights.
When a debt collector violates federal or state law, you can hold them accountable and do not need to wait for the government to do something about it. You can file a lawsuit against the debt collector since the law allows you to take steps to enforce it on your own. If you can successfully file a lawsuit, you may have the legal right to financial compensation from the debt collector.
Your right to compensation depends on when you file a lawsuit. If you do not file your lawsuit in time, the law will prevent you from receiving a settlement or award, no matter what the debt collector has done. Accordingly, you have a limited amount of time to act. When you contact a debt collection attorney right after you have faced illegal conduct, they will keep an eye on the calendar and help ensure you do not miss the deadline. Never wait too long to get legal help from a FDCPA lawyer because not having one will make your case far more complicated and jeopardize your potential financial recovery.
What Is the Fair Debt Collection Practices Act?
The debt collection industry is prone to outrageous abuses that have affected millions of consumers like you. The way that the debt collection system works gives debt collectors a financial incentive to cross the line and use high-pressure tactics to try to collect from you. The initial creditor from whom you borrowed money has likely written off your debt if you have not repaid them within a certain amount of time, as accounting regulations require them to do. They have sold your debt to a collection agency that now owns the right of repayment, and anything you pay back will go straight to the debt collector. If they cannot get you to repay, they have the right to file a lawsuit in court, seeking a judgment against you. The creditor may also pay the debt collector a percentage of the money they can collect.
Congress passed the Fair Debt Collection Practices Act in 1977 to prevent some of these abuses. The law does not take away the right of a debt collector to buy debt and try to get it repaid. Selling your debt benefits a creditor who does not want to write off your debt entirely without getting anything. However, the law restricts what debt collectors can do to get you to repay. The law prohibits an entire list of practices, and one of these practices is trying to collect on an invalid debt. If the debt collector has broken the law, you can file a lawsuit only if you do it within a certain time.
You Need to Know the Statutes of Limitations Under the Law
Regarding the FDCPA, there are two different issues you should understand relating to the statute of limitations. The first relates to how long a debt collector has to attempt to collect on a debt from you. The second issue pertains to how much time you have to file against the debt collector to seek compensation for their wrongful actions.
You Can Sue the Debt Collector Within One Year of the Date of Violation
When a debt collector breaks the law, you have the private right of action to sue them directly for their wrongful actions, and you can either file an individual or class action lawsuit against them. The FDCPA applies its statute of limitations to your lawsuit, which differs from those in other civil lawsuits. Even though the debt collector has broken the law, they still have rights. One of these rights includes not facing a lawsuit years in the future when they may not have the evidence necessary to defend against your claim. The individual debt collector who broke the law may not have worked for the company for years by that point. While you have the right to seek compensation, the law also tries to remain fair to the debt collector by giving them some procedural safeguards.
You have one year from the date of the violation of the law to file a lawsuit against the debt collector, including any act against the FDCPA. For example, if a debt collector calls you and misrepresents who they are, or they are abusive and use profanity, you have one year from the date of that phone call to initiate legal action. The same goes if they try to collect an invalid debt from you.
The Statute of Limitations Resets Each Time the Debt Collector Breaks the Law
There is a question of how the statute of limitations works when the debt collector continuously breaks the law. For example, the debt collector may try to harass you by calling you repeatedly to annoy and intimidate you into paying them. Every single one of these calls beyond a certain point violates the law. The FDCPA states that each independent violation of the law resets the statute of limitations in your case, giving you one year from the last date of the breach to file a lawsuit. In the example where the debt collector repeatedly calls you, the statute of limitations begins on the date of the last phone call. If they were to call you another time, it resets again until they stop trying to call you.
Do Not Leave Anything to Chance When You Have a Potential FDCPA Lawsuit
However, you should not take any chances as far as the statute of limitations is concerned. Any time there is a limit on your time that you have to file a lawsuit, a court will construe it very strictly. There are few excuses for missing a deadline that will persuade a court not to dismiss your lawsuit. It does not matter whether you miss the statute of limitations by a day, a month, or a year; the result is almost always the same. Unless you can persuade the court that an exception applies, it will dismiss your lawsuit without a hearing on the merits. Judges are strict about statutes of limitations because you no longer have the right to seek compensation whatsoever once the deadline has passed. Thus, you cannot wait too long to take action because your right to compensation is on the line.
Accordingly, you should contact a debt collection attorney as soon as possible after the illegal conduct to discuss your case. It may take the debt collection lawyer some time to prepare your case to file in court. Your debt collection lawyer may want to explore whether it makes sense for you to explore filing or joining a class action lawsuit, and they need time to assess the landscape. The same debt collector who violated your legal rights may have done the same to others, and it may make sense for you to all file the case together as a class action lawsuit.
A Debt Collector Cannot Collect a Debt that the Statute of Limitations Bars
There is also an issue about whether the debt collector can act to collect certain debts. The debt collector is not allowed to take any actions to collect a debt that is time-barred, and they should know whether a debt is beyond the statute of limitations when they have purchased it from the original creditor. Unfortunately, the debt collector may have purchased a large tranche of debts, and they are not careful about checking to see whether a debt is too old before they take steps to try to collect it. In other cases, the debt collector may not care. They are trying to get away with everything they can, hoping you are unaware of your rights under the law and will pay the debt.
The length of time the debt collector has to try to get the debt repaid depends on state law. Each state has a statute of limitations that governs the debt's validity. Once the statute of limitations expires, the debt collector cannot collect on the debt because it is invalid.
Your Damages in an FDCPA Lawsuit
The FDCPA prohibits a debt collector from trying to collect on an invalid debt. If the debt collector does try, they are subject to penalties under the law. You can file a lawsuit against the debt as you would if they committed any other violation of the law.
If you prove that the debt collector broke the law, you have the legal right to damages under the FDCPA.
The debt collector may owe you money for the following:
- A one-time statutory penalty of up to $1,000
- Any financial losses that you have suffered as a result of the debt collector’s illegal conduct
- Emotional distress damages for the mental impact of the debt collector’s wrongful actions
- Attorney’s fees if you win or settle your case
You cannot obtain punitive damages if you have won your lawsuit under the FDCPA. Some states have consumer protection laws that allow you to receive punitive damages under these circumstances if the debt collector engages in egregious conduct.
To avoid any possibility of missing the statute of limitations under the FDCPA, you should contact a debt collection attorney immediately. Getting prompt legal help will inform you of your rights, and you may learn that you do not have to pay a debt because it has surpassed the statute of limitations. You will also know you have limited time to file the lawsuit and the consequences for missing the deadline.
A debt collection lawyer can also help you deal with an abusive debt collector. They will inform you of how you can file a complaint with a governmental entity, where they will investigate and take enforcement action. Your lawyer will also advise you on how to respond to the debt collector and what you should avoid (such as arguing with them).
You Do Not Have to Pay a Debt Collection Lawyer Out of Your Own Pocket
By hiring a debt collection lawyer, you can benefit from their knowledge and experience in handling these cases. They will assess your situation, thoroughly investigate, and determine whether there has been a violation of your rights. If they find evidence of illegal or abusive practices, they will take the necessary legal actions to hold the debt collector accountable and seek compensation on your behalf.
The good news is that, in most cases, debt collection lawyers work on a contingency fee basis, meaning that they only get paid if they are successful in obtaining compensation for you. You will not have to pay anything out of your pocket to get legal help, and you will not owe your attorney anything if you do not win your case. Even when you win, the defendant will cover the attorney's fees, meaning you have no financial risk in hiring a debt collection lawyer. You may not know your rights without legal representation, and the debt collector may get away with wrongful conduct.
It is essential to consult with an experienced FDCPA attorney who can help you determine your state's specific statute of limitations. An attorney will carefully review your case and advise you on the appropriate legal actions within the required timeframe. They will ensure you do not miss the deadline and maximize your chances of obtaining a favorable outcome.
A Debt Collection Lawyer Can Protect Your Rights
Understanding the statute of limitations for FDCPA claims is important in protecting your rights as a consumer. Time is of the essence, so do not delay seeking legal assistance if you believe a debt collector has violated the statute of limitations for the FDCPA. Contact an debt collection attorney today to discuss your case and take the necessary steps to hold the debt collector accountable for their actions.