You received a latter from a debt collection agency that demands you make arrangements to pay off an outstanding credit card or a personal loan account. Although the language of the letter is forceful, it does not appear to violate a groundbreaking consumer protection enacted by the United States Congress in 1977. However, there is one thing that bothers you.
The third party debt collector claims you owe much more money than you actually owe on the debt in question.
Responding to consumer pressure to end the overly aggressive tactics used by companies to collect debts, the United States Congress wrote the Fair Debt Collection Practices Act (FDCPA) into law. The FDCPA forbids bill collectors from issuing threats that can include a debt collection agency threatening to seize your property. In addition, the FDCPA bans third party debt collectors from making false statements regarding consumer debts.
What are Some Examples of False Statements?
According to the FDCPA, a bill collector such as Dynamic Recovery Solutions is not allowed to demand more money than what a consumer actually owes on a delinquent credit card or personal loan balance. Some debt collection agencies try to get more money than they are legally permitted to seek because far too many consumers keep unorganized personal financial records. Another sneaky debt collection tactic is for a company to claim you owe money on a consumer debt that is the legal obligation of someone else to pay. This typically involves bringing a family member into the picture to motivate you to pay off a debt you do not owe.
What to Do If Dynamic Recovery Solutions Makes False Statements
You should know the FDCPA gives consumers the legal tools to fight back against companies that lie about outstanding credit card and personal loan accounts. However, the United States Court of Appeals for the Eighth Circuit ruled in 2018 that consumers must also demonstrate the false statements issued by a bill collector negatively affected the ability to reach sound personal financial decisions. If Dynamic Recovery Solutions claims you owe money on a debt that you have no legal obligation to pay and you send the company money, then the third party debt collector made a false statement that adversely impacted your financial decision making process.
Seeking Monetary Damages for FDCPA Violations
The United States Congress did not feel it was enough to outlaw dozens of previously legal debt collection tactics. Under the FDCPA, you have the right to seek monetary damages against a company that made false statements regarding your debt. In addition to one-time statutory damages that cannot exceed $1,000, the FDCPA also allows consumers to seek just compensation for lost wages. The false statements made by a bill collector might have forced your employer to cut back your hours. FDCPA guidelines include a section that gives you the right to seek injunctive relief against a deceptive debt collection agency. Injunctive relief typically involves a civil court judge issuing a decree that prohibits a third party debt collector from contacting you in any way.
Schedule a free initial consultation with a licensed consumer protection attorney to learn more about the legal rights granted by the FDCPA.
*Disclaimer: The content of this article serves only to provide information and should not be construed as legal advice. If you file a claim against Dynamic Recovery Solutions, or any other third-party collection agency, you may not be entitled to compensation.