The Most Common FDCPA Violations by Debt Collectors

What is the Most Common Violation of the FDCPA?

Unfortunately, the most common violation (and violation we hear a lot about) is when a collector tries to file a lawsuit or collect on a debt that the consumer does not actually owe. If you've ever been in debt, you know how stressful it can be to receive the incessant calls. Fortunately, the Fair Debt Collection Practices Act is a federal law designed to protect you from harassment and unfair activities by third-party debt collectors. In this article, we'll provide you with an overview of the FDCPA, the most common violations of the act, and what you can do if you think your rights have been violated.

Key Takeaways on Common Violations

• The FDCPA is a federal law designed to protect debtors from harassment and unfair activities by third-party collectors
• The most common violations of the FDCPA include attempting to collect debts you don't owe, sending written notifications with insufficient information about the debt, and taking or threatening to take legal action or other negative actions.
• If a debt collector violates your rights under the FDCPA, you can take legal action and may be entitled to compensation.

What Is the Purpose of the Fair Debt Collection Practices Act (FDCPA)?

The Fair Debt Collection Practices Act is a federal law that aims to protect consumers from being mistreated by third-party debt collectors. It prohibits them from using abusive, deceptive, or unfair practices when collecting consumer debts, such as credit card debt or medical bills. It does not apply to business debts.

The FDCPA is enforced by the Consumer Financial Protection Bureau (CFPB), which is responsible for investigating and resolving complaints about certain violations. In 2021, consumers filed almost 122,000 debt collection complaints with the CFPB. Needless to say, be on the lookout for deceptive practices during any attempts at the collection of a debt because it's happening frequently.

The main purpose of the law is to ensure that consumers are treated fairly and respectfully. The law sets specific guidelines that must be followed when communicating with consumers, including restrictions on when and how often they can contact them. Violations of the the FDCPA give consumers the right to take legal action.

What Are the Most Common FDCPA Violations?

The main focus of the law is to provide guidelines for how a collector can communicate with debtors, what they can say, and what actions they can take. Here are the six most common violations a debt collector may commit that you should watch out for:

Violation #1: An Attempt To Collect Debts You Don’t Owe

The most common violation is when a debt collector attempts to collect a debt that you don’t owe. This can happen for several reasons, such as identity theft, a debt that was already paid off, or a debt that was discharged in bankruptcy.  If you receive a call or other communication demanding payment on a debt you don’t recognize, verify the debt before paying.

Violation #2: Insufficient Information on Written Notification About Debt

Under the FDCPA, debt collectors must provide written notification of the debt either before contacting you or within five days after first contacting you. This notification must include information about the debt and your legal right to dispute it. They must also provide you with information on how to dispute the debt within 30 days. If the written notice you receive is vague or lacks information about your legal rights, you can request more detailed information on the debt.

Violation #3: Threats To Take Legal Action or Other Negative Actions (That Aren’t Allowed by Law)

Debt collectors are not allowed to threaten you with illegal actions, such as damage to your credit, suing you on an old debt, or illegally seizing your property. Debt collectors also cannot threaten to arrest or jail you or garnish exempt funds like child support or unemployment benefits. If a debt collector threatens you with illegal actions, they are likely violating the law.

Violation #4: False Statements or Misrepresentation

Debt collectors are not allowed to make false statements or misrepresent themselves or the debt they are attempting to collect. This includes misrepresenting the amount of the debt, impersonating an attorney or government official, or misrepresenting that a consumer is committing a crime by not paying their debt.

Violation #5: Unlawful Communication Tactics

Debt collectors are not allowed to harass or abuse you while attempting to collect money. This includes frequent or repeated phone calls, continued contact after the consumer requested the debt collector stop contacting them, the use of profane or otherwise obscene language, and phone calls at inconvenient times. Debt collectors are only allowed to contact you at reasonable times, generally between 8 a.m. and 9 p.m. local time.

Violation #6: Threats To Contact Friends, Family, or Others About Your Debt

Debt collectors are allowed to contact your friends, family members, or employer, but they are limited in what they can say. They can only ask for your contact information and cannot discuss your debt or harass your friends, family, or employer in any way. If a debt collector knows that you are represented by an attorney, they must contact your attorney instead of calling you directly. If you make a written request for debt collectors or collection companies to stop contacting you, they must comply or they are breaking the law.

The FDCPA provides guidelines for how debt collectors can communicate with debtors and what they can say. If you believe that a debt collector has committed a violation, you can file a complaint with the Consumer Financial Protection Bureau or sue the debt collector for violating your rights.

What Can You Do if a Debt Collector Violated the Law?

If a debt collector is in violation of the law, you have legal rights and options available to you. Here are some steps you can take:

1. File a complaint with the Consumer Financial Protection Bureau. You can do this online from the comfort of your home. The CFPB will investigate your complaint and may take action against the debt collector.
2. Consider hiring an attorney who specializes in these types of violations. An attorney can help you understand your rights and may be able to take legal action on your behalf.
3. Send a cease and desist letter to the debt collector. This letter instructs the debt collector to stop contacting you, and they are legally required to comply.

Remember, you are not responsible for a debt collector's illegal behavior. By taking action, you can protect your rights and hold the debt collector accountable for their actions.

Can You Sue a Debt Collector for Harassment or Deceptive Unfair Practices?

Yep! If a debt collector violates the Fair Debt Collection Practices Act (FDCPA), you have the right to sue them for harassment. However, you must file your lawsuit in federal court within one year of the date that the debt collector violated the law.

What Are Some Penalties for Violating the FDCPA?

If you win a lawsuit against a debt collector for violating the FDCPA, the collector could be required to pay actual damages, which is the amount of money you’ve lost as a result of their actions. For example, if the debt collector’s actions caused you to lose wages or pay more on your cell phone bill because they were harassing you with phone calls, they would have to pay you to cover those costs.

In addition to actual damages, the debt collector could also have to pay up to an additional $1,000 in statutory damages. This is the minimum amount of damages that can be awarded in a lawsuit against a debt collector who violates the FDCPA.

If you hire an attorney to help you with your lawsuit, the debt collector could also be required to pay your attorney fees. This can be a significant amount of money, so it’s important to consider all of the potential expenses before deciding to sue a debt collector.

It’s important to note that even if you win a lawsuit against a debt collector, this doesn’t mean you won’t still owe them money. If you’re struggling with debt and can’t afford to pay your debt, you may want to consider filing for bankruptcy.

If you think you might have a case against a debt collection agency, you can usually get a free consultation for legal advice with a debt collection attorney. They can help you determine if you have a strong case and what your potential damages might be.

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