According to a report in today’s Houston Chronicle, consumers are filing 60% more lawsuits against debt collectors compared to last year in the local federal district court.
Under the Fair Debt Collections Practices Act, consumers are awarded $1000 statutory damages, along with any actual damages suffered. In addition, attorney’s fees may be awarded by the court.
Many consumers are not aware of their rights under the federal statute. There are many prohibited actions which could give rise to a Fair Debt lawsuit. Consumers may sue if a collection agency or attorney fails to cease communication after written notice or a debt collector communicates about a debt with a third party such as a debtor’s child, spouse or neighbor. The law also prohibits make harassing or repeated telephone calls, threats of arrest or use profanity in collection calls.
Many out of state collectors violate the law when they threaten to garnish the wages of Pennsylvania residents, which is not permitted.
As noted in yesterday’s post, consumer delinquencies are on the rise. In troubled times, collection agencies have greater difficulty in collecting debts from consumers who are in trouble. Are illegal tactics used more frequently as a result?
With more debt to chase, and less ability to pay, is it any surprise that Fair Debt lawsuits are also increasing?
Here is the article: http://www.chron.com/disp/story.mpl/front/6370628.html
Lee M. Herman, Esquire is a Creditors Rights attorney with offices in Media, Pennsylvania and Haddonfield, New Jersey. For thirty years, he has successfully represented consumers, lenders, borrowers, landlords and tenants in commercial and collection disputes, as well as many local businesses and professional practices in general corporate matters. He can be reached at (610) 891-6500, or by email at lherman@lmhlaw.com. His web site is www.lmhlaw.com
