Not every debt collection attempt is subject to federal debt collection regulations. Some debts are excluded from FDCPA protections, and certain entities are permitted to engage in otherwise prohibited debt collection practices. This depends on the specific nature of your debt and the facts of your case.
If you’re being harassed, abused, or lied to by a debt collector, discuss whether you have a claim under the Fair Debt Collection Practices Act with dedicated FDCPA protection attorney Jibreal S. Hindi. Call (844) 542-7235 or connect with his office online to schedule a free case evaluation.
The FDCPA primarily covers consumer (private) and not business debts. Debts protected under federal law include the following:
The FDCPA does not apply to corporate debts, business debts, or agricultural debts. However, federal laws prohibiting violent threats, harassment, fraud, and otherwise criminal conduct still apply to business debts. Speak with an experienced consumer protection attorney regardless of the nature of the account to discuss your rights.
The FDCPA only applies to debt collectors, defined as entities that regularly collect or attempt to collect consumer debts. It also covers institutions attempting to collect their own debts using a different name. However, it does not apply to entities collecting their own debts under their own names (such as Chase collecting on a Chase account), debts that were not in default when obtained by the collecting entity, debts obtained as security for commercial credit transactions, and debts incidental to fiduciary relationships. Though nuanced, an FDCPA lawyer can determine whether the collecting entity is covered under federal law.
If a debt collector covered by the FDCPA is attempting to collect on a covered consumer debt, it must comply with strict debt collection regulations. These regulations include limiting when and how the consumer must be contacted, prohibiting harassment and false statements, and protecting the consumer’s privacy with his/her employer and family members.
Engaging in unfair debt collection practices has financial consequences. An FDCPA litigator might file a lawsuit against the collection agency, typically identifying other impacted consumers, and demand damages for any actual losses, such as job consequences, and up to $1,000 per violation. This means you might obtain $1,000 for every fraudulent letter and unlawful phone call. Additionally, class action lawsuits might result in a penalty of $500,000 or 1 percent of the debt collector’s net worth, whichever is less, split between all plaintiffs. It also provides for legal fees and court costs. Finally, a compassionate consumer protection lawyer might even use the violations to obtain a fair settlement and pay your debts.
If you’re not sure whether your debt is covered under the FDCPA, contact experienced consumer protection lawyer Jibreal S. Hindi. He may be able to help you obtain damages and stop harassment even if you don’t qualify for FDCPA relief. Call his national legal team today at (844) 542-7235 or connect with them online.