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Lawbreakers face $500,000 class action lawsuits for illegal debt collections

Did you realize that lawbreakers can face class action lawsuits up to $500,000 if they violate federal law during debt collection. To give you a better understanding of the law iDebtHelp has compiled a four-part series of frequently asked questions concerning your legal rights under the Fair Debt Collection Practices Act. In this section, find how you can fight back if a lawbreaker has acted illegally during debt collection:

Lawbreakers caught violating federal laws during debt collection face legal actions

7) What control do you have over payment of debts? 

If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.

8) What can you do if you believe a debt collector violated the law? 

You have the right to sue a collector in a state or federal court within one year from the date you believe the law was violated. If you win, you may recover money for the damages you suffered. Court costs and attorneys’ fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector’s net worth, whichever is less.

9) Where can you report a debt collector for an alleged violation? 

Report any problems you have with a debt collector to your state Attorney General’s office and the Federal Trade Commission. Many states have their own debt collection laws and your Attorney General’s office can help you determine your rights. If you have questions about the Fair Debt Collection Practices Act, or your rights under the Act, write: 

Consumer Response Center, 
Federal Trade Commission, 
Washington D.C. 20580. 

Although the FTC generally cannot intervene in individual disputes, the information you provide may indicate a pattern of possible law violations requiring action by the Commission. To obtain a free copy of Best Sellers – a list of all the FTC’s consumer and business publications – contact: 

Consumer Response Center, 
Federal Trade Commission, 
Washington, D.C. 20580; 
202-326-2222. 
TDD: 202-326-2502. 

You may also access FTC publications at www.ftc.gov on the Internet. 

PART 4 – FINAL FAQs ABOUT YOUR LEGAL RIGHTS WITH DEBT COLLECTORS

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