6 Things You Can Sue a Debt Collector For

Most people find calls from debt collectors annoying. And while virtually everyone has dealt with these frustrating calls and intimidating letters to some degree, sometimes debt collection tactics cross the line into abusive, threatening, and often illegal practices.

No one should have to deal with these types of interactions, but it can be hard to spot violations. You’re probably just happy to get off the line or scared about what they’re telling you about your debts. Rules and laws govern debt collectors and their agents; violations are worth legal action.

As an Ohio consumer protection law firm, Luftman, Heck & Associate wants to inform individuals about their rights and provide guidance on navigating the complex terrain of debt collection and relief. Here, we will explore the common reasons debtors may have cause to sue debt collectors, the significance of taking legal action, and when it may be appropriate to pursue a lawsuit against a debt collector.

FDCPA Violations & Grounds for Suing Debt Collectors

Debt collectors are bound by federal and state laws regarding conducting business and collecting outstanding debts, such as the Fair Debt Collection Practices Act (FDCPA). These laws protect consumers and ensure debts are settled with as much dignity and oversight as possible.

Unfortunately, the debt collection industry is still fraught with abuse and deceptive tactics employed by unscrupulous debt collectors. This includes harassment, false representations, threats, invasion of privacy, and misrepresentation of debt. Armed with this knowledge, you will hopefully be better equipped to recognize when your rights are violated and take appropriate action, including filing a lawsuit.

Common Reasons You Can Sue a Debt Collector

The FDCPA is a federal law that protects consumers from abusive and deceptive debt collection practices. Debtors can sue debt collectors for violating various provisions of this act.

1. Debtor Harassment

One of the primary protections of the FDCPA covers harassment like excessive phone calls, profane or obscene language, making threats, or engaging in other intimidating or oppressive conduct. For example, if a debt collector repeatedly contacts you at work or berates you, it may constitute harassment.

When debt collectors resort to aggressive tactics that cause emotional distress or disrupt your life, you can take legal action. Document the incidents, noting dates, times, and details of the abusive behavior, as this evidence will support your case.

2. False or Misleading Representation

The FDCPA also requires that debt collectors accurately represent the amount of the debt, their identity, and the consequences of non-payment. Making false statements, misrepresenting the debt, or impersonating a government official can lead to legal action. For instance, if a collector falsely claims to be an attorney or threatens legal action they cannot take, it can form the basis of a lawsuit.

False representations undermine the trust instilled in reputable debt collection companies and give the industry a bad name. If you suspect the debt collector is inflating the amount you owe or purporting to be a law firm considering litigation against you, this could be an intimidation tactic. Gather your documents and contact a lawyer of your own.

3. Unfair Debt Practices

In addition to harassment and misrepresentation, a debtor can sue for certain unfair or unconscionable practices. If a collector threatens to take action, they cannot legally pursue or mislead you about your rights. For example, if a debt collector states you can be arrested for lack of payment, or they contact you late at night, you may be able to sue.

Debt collectors often exploit a debtor’s lack of knowledge about their rights and options. Educating yourself about what debt collectors can and cannot do is wise. You cannot be arrested for being in debt and should not be forced to endure calls at all hours. If a debt collector makes aggressive claims, keep a record and provide it to your attorney.

4. Invasion of Privacy

It’s not unheard of for debt collectors to threaten to tell your employer, customers, or neighbors about your debt. They are attempting to embarrass you into paying. Still, if a debt collector improperly discloses your personal financial information to third parties without permission, it may be grounds for a lawsuit. This could include situations where the collector discusses the debt with family members, friends, or employers.

5. Defamation

In certain circumstances, a debt collector’s false statements about your financial situation or reputation could potentially give rise to a defamation claim. While proving defamation can be challenging, you may have a case if you can connect a loss to their claims. Defamation claims require demonstrating that the false statements caused harm and were made with malicious intent or a reckless disregard for the truth. For instance, if you were a business owner and a debt collector made false claims about your debt, and you lost business as a result, this could be actionable.

6. Other Violations of Federal & Applicable State Consumer Laws

Depending on the circumstances and where you live, other laws such as the Fair Credit Reporting Act (FCRA), the Telephone Consumer Protection Act (TCPA), or state-specific consumer laws like The Ohio Consumer Sales Practices Act (OCSPA) may apply. These laws address issues such as credit reporting, robocalls, wage garnishment, property liens, or debt collection requirements in certain jurisdictions.

If you believe any of these apply, it’s wise to consult an experienced consumer law attorney in your state to evaluate the severity of any violations and determine the best steps to rectify the matter. This may include a strongly worded letter from your attorney alerting the company to you being represented by counsel or filing a lawsuit if necessary.

Damages You Can Recover by Suing a Debt Collector

By suing a debt collector for violating the FDCPA or a similar consumer protection law, you may be eligible for compensation for damages caused by their unfair and deceptive practices. The specific damages available will vary based on the circumstances of the case, the severity of the abuses, and other factors. Generally, you can be awarded the following:

• Actual damages: These are your compensatory losses related to the specific harm or losses you suffered because of the debt collector’s violations. Examples of actual damages may include out-of-pocket expenses caused by the debt collector’s misconduct or emotional distress caused by their abusive behavior.
• Statutory damages: The FDCPA and specific state laws allow wronged consumers to recover predetermined amounts defined by the law and awarded regardless of whether the debtor can prove actual damages. Statutory damages are a form of punishment for the debt collector’s violations and can range from a few hundred dollars to a specified maximum defined by the law.
• Your attorney’s fees: If you successfully sue a debt collector for violations, the court may order the debt collection agency to pay your attorney’s fees and any costs incurred during the legal process. This is meant to ensure that debtors have access to quality legal representation in the event of abusive collection practices.

Why Suing Dishonest Debt Collectors Is Important

Being nervous about pursuing legal action against a debt collector is understandable. After all, you probably owe a certain amount and may feel intimidated by going up against a large debt company. But you should not put up with abuse or be taken advantage of, regardless of what you owe.

By standing up against abusive debt collection practices, you protect your rights and contribute to a system that encourages fair treatment of all consumers. It is essential to recognize that debt collectors are bound by laws that govern their behavior. When they violate these laws, they should be held accountable. In most cases, their punishment is financial restitution for the harm they inflict.

When you make mistreating consumers too expensive, that is often the best way to change the way these debt collectors do business.

Knowing when to sue a debt collector is a critical consideration. While legal action is not always the first step, it can become necessary when other attempts to resolve the issues have failed.

Have Questions? Consult a Debt Collection Defense Lawyer

You have a right to be treated respectfully, even if you owe someone else money. An experienced lawyer can help you determine if the law has been violated and determine your rights to compensation. As a founding partner of Luftman, Heck & Associate, consumer attorney Jeremiah E. Heck is dedicated to helping people manage their financial situations. He isn’t afraid to fight back against unfair debt collection practices.

Contact LHA for a 100% free one-on-one consultation. We’ll review your situation and guide your best path forward.