FDCPA Violations & Counterclaims Against Debt Collectors
The Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692, is a powerful federal statute designed to eliminate abusive, deceptive, and unfair debt collection practices. When a debt collector or collection law firm violates the FDCPA, consumers can turn the tables by filing a federal lawsuit or court counterclaim.
1. Major Actionable FDCPA Violations
- Suing on Time-Barred Debt (15 U.S.C. § 1692e(2)): Filing a lawsuit or threatening legal action on a debt where the statute of limitations has expired is a per se deceptive practice under federal law.
- False Representations of Amount Due (§ 1692e(2)(A)): Adding unauthorized interest, attorney's fees, or late fees not permitted by the original contract or state law.
- Third-Party Communications (§ 1692c(b)): Disclosing the debt to family members, employers, coworkers, or neighbors.
- Harassment & Threats (§ 1692d): Repeated calling, using profane language, or falsely threatening arrest or wage garnishment without a prior judgment.
2. Statutory Remedies & Attorney's Fees
Under 15 U.S.C. § 1692k, a prevailing consumer is entitled to:
- Statutory Damages: Up to $1,000 per action without having to prove actual financial loss.
- Actual Damages: Compensation for emotional distress, lost wages, or out-of-pocket costs.
- Mandatory Attorney's Fees: The debt collector must pay 100% of your attorney's fees and litigation costs.