No, debt collectors cannot lie to you about how much you owe. This would be considered a ‘false or misleading’ representation under the Fair Debt Collection Practices Act (FDCPA). Specific laws also prevent certain debt collectors from collecting interest, fees, charges, or any costs in addition to the principal and interest upon charge-off.
If a debt collector is lying about the amount you owe, immediately contact experienced FDCPA attorney Jibrael S. Hindi for free online or at (844) 542-7235. His national consumer protection team might help you stop unlawful debt collection practices and even recover damages for the illegal conduct.
If you’re in collections, it generally means that you’ve defaulted on a consumer debt. Consumer debts commonly include the following:
The FDCPA doesn’t cover certain business debts, tax debts, family court obligations, and criminal fines/restitution. However, the above consumer debts have a charge-off date. This date is often, but not always, 120 days after default. Your debt can collect interest and fees, such as overage charges, until the charge-off date, which generally triggers the debt collection process. This ‘charge off’ amount sets the amount you owe, and collections agencies cannot generally charge additional interest, costs, or fees.
The FDCPA specifically prohibits both lying about the amount owed on a debt and collecting any amount – including interest, fees, charges, and incidental expenses – not authorized by the original lender agreement. These are considered misleading and unfair debt collection practices under the Fair Debt Collection Practices Act.
If a third-party debt collection agency lied to you about the amount owed to either line its pockets or make settling for the principal look more enticing, you might be entitled to money. This means your actual damages resulting from the lie, such as any overpayment, or $1,000. If the debt collection agency made a practice of lying about the balance, you might work with an experienced FDCPA class action lawyer to obtain additional damages during a class action lawsuit.
The FDCPA only applies to third-party debt collection agencies and not the original creditor, such as your mortgage lender. This means you cannot sue the original creditor under the FDCPA if it lied about the amount owed. However, a consumer protection lawyer can help you sue for breach of contract under the original agreement. He can also help eligible clients obtain additional damages if the company intentionally lied about the amount owed to make a settlement look more enticing, rather than ‘lying’ due to an accounting error.
In addition to getting your money back and holding lying debt collection agencies accountable, the FDCPA allows eligible claimants to demand attorneys’ fees and court costs. Discuss lies about how much you owe with Jibrael S. Hindi for free by calling (844) 542-7235 or connecting with his consumer protection team online.