Importantly, people can sue debt collectors who break the law by lying or providing wrong information. The Consumer Financial Protection Bureau is the administrator and a primary enforcer of the Fair Debt Collection Practices Act.
If you believe a debt collector is violating the law, you may report your complaint with the Attorney General's Office. The Office uses complaints to learn about misconduct.
If you doubt that you owe a debt, or that the amount owed is not accurate, your best recourse is to send a debt dispute letter to the collection agency asking that the debt be validated. “An effective debt-dispute letter must be clear and concise,” says Daniel Chan, Chief Technology Officer for Marketplace Fairness.
If a credit bureau, creditor, or someone else violates the Fair Credit Reporting Act, you can sue. Under the Fair Credit Reporting Act (FCRA), you have a right to the fair and accurate reporting of your credit information.
Falsely represent or imply that the consumer committed a crime or other conduct to disgrace the consumer. Communicate, or threaten to communicate, credit information that the debt collector knows or should know to be false, including not identifying disputed debts as such.
A debt collector is also not allowed to harass, oppress, or abuse you or anyone else they contact. This includes repetitious phone calls with the intent to harass, use of obscene or profane language, and threats of violence or harm.
Here is a list of examples of how debt collectors can violate FDCPA rules: Use of threat, violence or other criminal means to harm a person, reputation or property. Use of obscene or profane language. False representation that the debt collector represents a state or federal government.
If you feel that your rights under the Fair Debt Collections Practices Act (FDCPA) have been violated, you have the right to sue the debt collection agency.
Contact the US Federal Trade Commission.
Contact the US Federal Trade Commission (FTC) online. The FTC can investigate your complaint and take the following actions: Require the advertiser to cease the deceptive advertising. Bring a civil lawsuit (usually class action) on behalf of people harmed.
The tort of defamation allows a person to recover damages where their reputation is harmed by false written or oral statements of another that are made to a third person. Lenders and creditors who provide information about a person to a credit bureau certainly provide written or oral statements to a third person.
A 609 dispute letter is actually not a dispute but is simply a way of requesting that the credit bureaus provide you with certain documentation that substantiates the authenticity of the bureaus' reporting.
Debt collectors are legally required to send you a debt validation letter, which outlines what the debt is, how much you owe and to who, as well as when you need to pay the debt. If you're still uncertain about the debt you're being asked to pay, you can request a debt verification letter to get more information.
Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
If the debt collector receives your request within 30 days after you receive their written notice about the debt, they must stop trying to collect the debt until they provide written verification of the debt to you.
Fact-Checked
Yes, you can sue your employer for false promises. Misleading statements can land an employer in court for negligent misrepresentation, fraudulent inducement, or other legal issues.
To succeed in a defamation lawsuit, an employer must prove that: the employee made a false statement about the employer or their company. the statement was disseminated or made public to a third party. the statement caused harm to the employer's reputation or business.
You may sue for a data breach if you can prove that you suffered measurable harm because of the breach, such as identity theft or financial loss. Businesses can sue if a breach has resulted in financial harm or loss of intellectual property.
Let's Summarize... If you're facing debt collection, it's important to understand how the process works and what options you have. If you ignore a debt in collections, you can be sued and have your bank account or wages garnished or may even lose property like your home. You'll also hurt your credit score.
Although the unpaid debt will go on your credit report and have a negative impact on your score, the good news is that it won't last forever. After seven years, unpaid credit card debt falls off your credit report. The debt doesn't vanish completely, but it'll no longer impact your credit score.
Once you receive the validation information or notice from the debt collector during or after your initial communication with them, you have 30 days to dispute all or part of the debt, if you don't believe that you owe it. If you receive a validation notice, the end date of the 30-day period will be specified.
Key Takeaways
Even if you owe money, debt collectors aren't allowed to threaten, harass, or publicly shame you. You have the right to order a debt collector to stop contacting you, and they must comply. If there's a mistake, and you really don't owe the debt, you can take steps to remedy the error.
By paying the collection agency directly, the notification of the debt could stay on your credit report longer than if you attempt to use another option, like filing for bankruptcy. When institutions check your credit report and see this information on it, it may harm your ability to obtain loans.
If you don't respond in time, the judge is likely to enter a default judgment against you. This means you lose the case and the creditor has access to collection measures like wage garnishment or a bank account levy. They may also be able to put a lien on your property.