Mounting bills have turned your world upside down. The financial hole has become so deep that you have trouble sleeping at night. To make matters worse, a debt collection agency has contacted you in regards to one of the outstanding debts. The company is relentless in its pursuit of what the company feels is rightly its money. From threatening to seize your property to claiming you can go to jail for the unpaid debt, the third party debt collector has violated a monumental federal consumer protection law.
Prior to September 20, 1977, consumers had no legal way of preventing bill collectors from implementing deceptive and overly aggressive debt collection tactics. The United States Congress addressed the legal imbalance by passing the Fair Debt Collection Practices Act (FDCPA). According to the FDCPA, you do not have to tolerate harassment and intimidation. You also do not have to take the false statements made by a bill collector.
Common False Statements Made by Debt Collection Agencies
Any time a debt collection agency claims it can do something the law prohibits, the company making the claim has made a false statement. For example, a company that threatens to have you arrested for a delinquent credit card or personal loan account has violated the false statement provision of the FDCPA. You should know the United States never has or never will have debtor prisons. A third party debt collector that states otherwise has made a blatant false statement. You should accept a third party debt collector that threatens to contact the IRS concerning your debt. The IRS is in the tax collection business, not the debt collection business.
What “Material” Means for False Statements
Most provisions of the FDCPA are clear cut guidelines for establishing legal debt collection agency practices. The false statements provisions of the FDCPA has recently experienced a major change. In 2018, the Eighth Circuit court ruled there is now a second litmus test for proving a bill collector made false statements. Not only do you have to prove false statements were made, you also have to show the false statements were “material” to how you conduct you financial business.
Do You Qualify for Monetary Damages?
There are two types of monetary damages for FDCPA cases: Statutory and actual. Statutory damages cover all violation of the FDCPA committed by the same debt collection agency. Capped at $1,000, receiving statutory damages is by far the easiest type of just compensation to receive. Actual damages, which cover the pain and suffering caused by physical and/or emotional duress symptoms, require a detailed submission of evidence linking the symptoms to the illegal acts conducted by a third party debt collector. Physical symptoms triggered by overly aggressive debt collection tactics can include skin rashes, high blood pressure, and frequently recurring intense migraine headaches.
Have a Licensed FDCPA Attorney on Your Side
Filing a claim against a bill collector like Global Collection Agency requires collaboration with a licensed FDCPA lawyer. You can expect Global Collection Agency to come to court with a team of high-powered attorneys. Make sure you come to court with a licensed FDCPA attorney by scheduling a free initial consultation.
*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 Global Collection Agency, or any other third-party collection agency, you may not be entitled to compensation.