Consumer Law

What Are The Four Benefits Of The Fair Debt Collection Practices Act For Alabama Consumers?

By M. Stan Herring

Alabama consumers who are harassed by debt collectors and debt buyers often wonder if the law really helps them - that is, what do they get out of the Fair Debt Collection Practices Act (FDCPA)? Many things, but four primary ones.

First, you get up to $1,000 in statutory damages from a collection agency or debt buyer who has violated the FDCPA. You get this even if you cannot prove any actual damages. This is designed this way in order to encourage people who have been abused to sue the debt collectors to help encourage the debt collectors to follow the law.

Second, if you have actual damages (loss of income, emotional distress, credit damage, etc) then you can be compensated for those actual damages. We have known of consumers who have been fired because of calls to work, who have suffered damage to their credit reports by false reporting, and other types of damage. The law does allow for compensation.

Third, you get a free lawyer in the sense that the debt buyer or collection agency may have to pay for your attorney's fees. We handle these cases on a contingency basis which means there is no upfront charge and we get paid when the case is settled or when a court determines what our fees will be that have to be paid by the defendant. You can appreciate the irony of an abusive debt collector not only having to pay statutory damages or actual damages but also its attorney and your attorney....

Finally, the costs and expenses of the case will ultimately be paid by the debt collector if you are successful.

So, does the FDCPA provide anything? Absolutely. Statutory damages. Actual damages. Free lawyer. Costs and expenses. The FDCPA is a powerful weapon when you are dealing with abusive debt collectors. We can help. We sue abusive debt collectors.

Full post as published by Alabama Consumer Blog on May 13, 2008 (boomark / email).