Debt Collector Harassment
The Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act is a federal law the regulates what debt collectors can and can’t do. Broadly speaking, it prohibits any collection conduct that is false, misleading, unfair, harassing, or abusive. In passing the FDCPA, Congress recognized that illegal debt collection contributes significantly to the number of bankruptcy filings and divorces, as well as to the loss of jobs and invasions of personal privacy.
If you’ve been subject to illegal debt collection activities, the FDCPA provides powerful remedies to stop the illegal conduct and hold the offending debt collector responsible for its bad acts.
Since 2009, I have represented people in cases involving illegal debt collection practices.
Who the FDCPA Applies To
The FDCPA only applies to debt collectors who are collecting debts on behalf of another business. This includes collection agencies, debt buyers, and collection law firms. The FDCPA does not apply to banks, credit card companies, and other lenders collecting their own debts.
The FDCPA only covers consumer debts, which means those debts incurred for personal, family, or household purposes. It does not cover business debts.
Whether you owe the debt is not a concern under the FDCPA. Even when a debt is valid, the collection process must comply with the law.
Common FDCPA Violations
The statute broadly prohibits conduct that is harassing, false, misleading, or unfair. Courts have recognized violations involving:
Collecting a debt that you don't owe;
Communicating with other people about your debt;
Calling you at work after you've told the collector not to;
Telling you something that is false or misleading (often a problem in student loan collections);
Harassing you, insulting you, or using racial slurs;
Continuing to call you after you tell them to stop;
Wrongfully garnishing your bank account or paycheck
This isn't an exhaustive list. If you think a collector's conduct might be illegal, you should talk to a consumer lawyer to figure out whether the FDCPA was violated.
When a FDCPA Case Is Worth Pursuing
Not every unpleasant collection call justifies a lawsuit. Courts in Minnesota had observed that a collector’s “bad manners” don’t rise to the level of harassment or abuse.
Similarly, not every false statement is actionable. In Minnesota and Wisconsin, courts ask whether the false statement was “material.” A statement is considered material if knowledge of that information would affect a person's decision making. For example, misstating the amount owed is material. Telling you it’s raining outside, when it’s actually sunny, is not material, at least in the debt collection context.
In my experience, the strongest FDCPA cases involve clear, bad actions by the debt collector that caused measurable harm to the consumer. Harm may include financial loss or emotional distress.
Cases based solely on minor technical violations with no meaningful harm are far less compelling.
FDCPA Damages and Attorney Fees
The FDCPA allows recovery of statutory damages of up to $1,000 per lawsuit, actual damages for proven harm, and attorney fees and court costs. Monetary damages require sufficient proof of the loss and emotional distress damages require detailed testimony about tangible physical symptoms of emotional distress. Corroborating witnesses are very helpful when seeking emotional distress damages.
The FDCPA is fee-shifting, which means that when violations are proven, the collector is responsible for paying the consumer’s reasonable attorney fees.
Because of this fee-shifting, I handle all FDCPA cases a contingency basis.
FDCPA Violations in Collection Lawsuits and Garnishments
FDCPA violations sometimes arise during collection lawsuits and garnishments. In some situations, collector misconduct creates leverage in resolving the underlying debt. In others, it forms the basis of a separate claim.
FDCPA Violations in Bankruptcy
It’s an unfortunate reality that some debt collectors don’t believe the bankruptcy automatic stay and discharge injunction apply to them. Over the years, I’ve helped many clients fight back against debt collectors attempting to collect debts that were wiped out in bankruptcy.
Ready to talk to a lawyer about stopping debt harassment?
Schedule a free consult with FDCPA attorney Todd Murray.
Todd has been suing harassing debt collectors since 2009. He has recovered hundreds of thousands of dollars for his clients and has held the debt collection industry accountable when it resorts to illegal collection tactics. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.