| What to Do if You Need to Sue a Debt Collector |
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| Written by Sean Payne |
| Friday, 25 September 2009 19:51 |
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If you're in debt up to your ears, you might be worried that a debt collector might sue you for not paying on your debt. But did you know that there are many reasons for which you can actually sue them instead?
If you're in debt up to your ears, you might be worried that a debt collector might sue you for not paying on your debt. But did you know that there are many reasons for which you can actually sue them instead? With the understanding that I am not a lawyer and am not giving any legal advice, here are the facts: The Fair Debt Collection Practices Act, or FDCPA, outlines specific behaviors in which debt collectors are forbidden to engage. According to this law, if a collector does engage in these forbidden practices, you may have the right to sue them in a state or Federal court. What are the forbidden practices that debt collectors may not engage in? The first of these practices is harassment. The FDCPA defines harassment as using "threats of violence or harm", annoying somebody through repeated telephone calls, or using obscene language. The second forbidden practice is using false statements to collect on a debt. The FDCPA prevents debt collectors from telling lies in order to collect on a debt. This includes falsely presenting themselves as government agents or attorneys, lying about how much is owed, or claiming that your inability to repay your debt makes you a criminal. Debt collections agents have a long history of being dishonest if it makes them easier to collect on a debt. Debt collectors are also not allowed to publicize the fact that you owe money on a debt. This means they cannot contact other people about your debt, contact you via postcard (since the contents of a postcard can be seen by anyone), or publish your name on a list of people who have outstanding debts. The only time they can contact other people about a debt you owe is to discover your address, telephone number, or place of employment. So, what happens if a debt collector does engage in one of these forbidden practices? Your first action should be to inform them that you are aware of your rights under the FDCPA, and that they must cease their illegal actions. Most of the time, this will resolve the problem without you having to resort to legal action. If that doesn't fix the problem, however, you can still sue them in state or Federal court up to a year from the time they violated the restrictions of the FDCPA. You can sue them for any damages that their illegal practices demonstrably caused, including medical bills and lost wages. Even if you can't prove that they caused any actual damages, the judge can still require that they pay you up to $1000. In addition, the judge can require them to reimburse you for your attorney fees. Remember that your debt doesn't disappear just because the debt collector broke the law under the FDCPA while trying to collect on your debt. If you owe the debt, you will still have to repay the debt. The FDCPA only allows you to sue them if they break the law. Be aware of the law, and your legal rights. If anyone breaks the law and violates your rights, be sure to use the law to protect your rights. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Sean Payne is a debt reduction fanatic. After paying off his own debt, he spent over a decade developing an effective strategy for getting out of debt. Check out Sean's fascinating e-course about how to sue debt collectors and get out of debt, quickly and easily. |