The debt collector has many motivations to do whatever they have to in order to get you to pay the debt. They stand to make quite a bit of money if you repay the debt promptly and in full. Some debt collectors may resort to false and high-pressure tactics to ambush you and scare you into paying. Although you may be under the impression that the debt collector has power over you, federal law actually gives you some power in the situation to enforce your own rights.
With the help of a FDCPA attorney, you can file a lawsuit against the debt collector to seek compensation for their wrongful practices. If you can prove that the debt collector broke the law, they will need to pay you for the harm that they have caused.
The key is, you get immediate legal help from a debt collection attorney. They can explain both the law and your legal options. Then, they can wage a legal battle on your behalf so you can seek the money you are entitled to under the law.
Know What Is Illegal Conduct When Dealing with a Debt Collector
When you have been contacted by a debt collector, the most important thing is that you are informed of your rights and what conduct of theirs may be illegal. You may think that because you have received a call from a debt collector, you must do whatever they tell you. That can not be further from the truth. You have rights under federal and state law, and there are numerous constraints on the debt collector’s conduct. If they break the law, you can hold them accountable in a lawsuit.
Federal law requires the debt collector to correctly identify themselves when they try to contact you. They must state their identity at the outset of the conversation, and what they say must reflect who they truly are. They need to tell you that they are a debt collector. They must tell you who they work for, and they cannot misrepresent themselves.
How Debt Collectors May Try to Trick and Pressure You
A debt collector may be trying to use whatever hook they can to get you to pay them promptly. The debt collector has a financial incentive to get full payment from you as quickly as possible. They have purchased tranches of debt from a creditor, likely for pennies on the dollar. Getting full payment from you without going to court is a major win for them. Your payment will be both profit for the debt collector and money that allows them to purchase more debt so they can pressure people like you into paying.
In some cases, debt collectors have been known to use outrageous tactics to con debtors into paying their debt as soon as possible. Of course, as a debtor, you do owe the money, but efforts to achieve repayment must not be done under false pretenses. There have been stories of debt collectors exaggerating who they really are and what powers they have to frighten people into repaying whatever they ask without any questions.
One common scheme that debt collectors use is to pass themselves off as a lawyer when they contact you. There are some lawyers who engage in debt collection, but some collectors will try to pretend that they are something else to convince you that there is a prospect of potential punishment if you do not do what they ask. If you believe that a lawyer is after you, there is a chance that you may become scared and more compliant. You may be afraid of what they can do, even though an attorney has no greater authority over you than anyone else.
A debt collector may also misrepresent the potential consequences that you may face if you do not pay your debt. Remember that debt collection is always a civil matter instead of a criminal one (unless there was some sort of fraud on your part, which is actually a very rare circumstance). There is generally no way that you can be sent to jail for unpaid debt. The worst consequence is that the debt collector will file a civil lawsuit against you in court, and they will obtain a judgment that will allow them to garnish your pay or take your assets. You cannot be sent to jail for unpaid debt, as the days of debtor prisons in this country have long since ended. However, a debt collector may tell you that they have the power to send you to jail. If you do not know your rights, you may be legitimately afraid that they can follow through on their threat.
Other Deceptive Practices That Debt Collectors Use
Debt collectors may use a variety of other false and deceptive practices when dealing with you. One common tactic is for a fraudulent debt collector to try to collect money that you do not owe. A debt collector may purchase an entire tranche of debt, and they may not pay too much attention to what they are buying. The debt that you owe may be past the statute of limitations, where the debt collector can try to get your money. However, the debt collector may be fully aware that they are trying to collect an invalid debt from you.
The debt collector may make up a debt that you never owed in the first place and use their title and perceived power to try to force you to pay it. Alternatively, they can try to inflate the amount of your debt or add illegal fees onto the amount they claim you owe.
Prohibited Practices Under Federal Law
The Fair Debt Collection Practices Act specifically prohibits these acts in connection with debt collection efforts. In some ways, the FDCPA is a law that requires truth in debt collection practices. Not only does it present harassing and abusive debt collection practices, but it also makes misrepresentations in connection with debt collection punishable. Specifically, the law states:
“A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt.”
The law gives many scenarios that will be prohibited, including the false representation of:
- The character, amount, or legal status of any debt
- That any individual is an attorney or that any communication is from an attorney
- The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person
- The threat to take any action that cannot legally be taken or that is not intended to be taken
- The false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer
There is also a general prohibition on the use of false and deceptive practices in connection with the collection of debt.
The FDCPA gives some teeth to these prohibitions by allowing you to take action to enforce the law. Government agencies, such as the Consumer Financial Protection Bureau, can take civil enforcement action. You also have the right to act as your own private attorney general to enforce any violations of the law that have impacted you. The FDCPA contains a private right of action that will allow you to sue a debt collector in court to recover damages.
How to File and Win an FDCPA Lawsuit
Under the FDCPA, you have the right to file an individual lawsuit against the debt collector. Alternatively, you can file or join a class action lawsuit if the debt collector subjected many people to the same exact harm as you. There are also state laws that will allow you to file a lawsuit against the debt collector for similar conduct. Your debt collection attorney can review both federal and state law and help you determine which one is more advantageous for you to use as the basis for your lawsuit.
You do not have to prove that you suffered actual damages to win an FDCPA lawsuit, although it will certainly help increase the amount of your financial recovery. You are presumed to have suffered damages solely by virtue of the fact that the debt collector has broken the law.
To win an FDCPA lawsuit, you will need evidence proving the debt collector has committed some sort of deception or misrepresentation. The debt collector is often smart enough not to put anything illegal in writing, and they will confine their misrepresentations to verbal conversations where it may be your word against theirs. Thus, it is vital that you contact a debt collection lawyer once you suspect that the law is being broken to learn more about how you can document and prove your case.
What To Do if a Debt Collector Is Making a Misrepresentation
If you are being pressured or lied to by a debt collector, it is important that you do not fall into the trap that they are trying to set for you. Of course, it is up to you to decide whether to pay the debt, and there can be consequences for nonpayment. However, your decision about who and whether to repay should be based on accurate representations and not deception.
First, you should always ask the debt collector to put what they are saying to you into writing. If they refuse to do that, it can be a sign that something wrong is afoot. If the debt collector has not represented who they are at the outset of the conversation, it is important for you to ask questions about their identity.
It may be difficult to know how to handle a debt collector, especially when you are panicked and in fear of them. You may fear the consequences and believe whatever they are telling you. It is important that you contact a debt collection attorney if you even suspect that anything is wrong. Your debt collection lawyer will advise you about what is illegal and how to handle the debt collector. They can also file a lawsuit against the debt collector to seek compensation for their wrongful actions.
Then, you can also file a complaint with federal regulators. There are several agencies that are tasked with regulating debt collectors, and they can take enforcement action. There is a chance that you may even be compensated from the proceeds of any fine, although you should file your own lawsuit and not depend on being paid by the government.
Damages in a Debt Collection Lawsuit
If you are successful in filing a lawsuit against the debt collector, you may receive the following damages:
- A statutory penalty of up to $1,000 (this is a one-time payment, and you do not get money for each time that the debt collector broke the law)
- Emotional distress for the experience in dealing with the debt collector and the harm to which you have been subjected
- Financial losses for any debt that you wrongly repaid or any other economic losses that the debt collector caused you
- Attorney’s fees, so you can receive the entire amount of money that you receive from the debt collector
Under federal law, you may be unable to receive punitive damages. However, some states allow you to recover punitive damages if you win your case at trial. Depending on the debt collector’s conduct, that may be a factor that your debt collection attorney may consider in advising you where to file your lawsuit.
You never have to pay any money out of your own pocket when you are seeking help from a debt collection attorney. There is no retainer fee that you need to pay, nor are there hourly bills that you will receive. Your lawyer is only paid when you win your case, and their fee will be paid by the defendant according to the terms of federal law. You pay nothing if you do not win.
A Debt Collection Attorney is Ready to Fight for You
If you believe a debt collector has used false or deceptive practices to collect from you, you should call a debt collection attorney as soon as possible to protect your rights.