Wednesday, May 26, 2010

MSN Money: You can sue your debt collector for FDPCA violations

Here’s a good one: not just “beat the bill collector” but sue your debt collector. At least that’s the topic of an MSN article today, “Sue your debt collector: Federal law sets clear limits on what debt collectors can do. If their tactics go beyond those limits, you can win -- and it's a surprisingly easy process”, by Kathryn Reynolds Lewis of MSN Money, link here.

Federal law allows a debtor to receive $1000 for each instance of abuse of their rights under the FDPCA (Fair Debt Collector Practices Act), which can include making false threats or calling at non-allowed times.

It’s not clear from the article whether the debt collection company is liable, or whether the individual debt collector as an employee of the company is liable as an individual for an FDCPA violation, but I believe it is the latter.

Debt collectors don’t make that much an hour (typically $12 or less), but do make commissions on what they collect. So the system can invite abuse.

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