If a debt collector violates fair debt collection laws, consumers can file a lawsuit without needing to register a complaint. Emotional distress, such as anxiety or insomnia, qualifies for damages, alongside potential penalties and legal fee reimbursements.
By Brad Nakase, Attorney
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If debt collectors violate the fair debt collection regulations, consumers have the right to sue them. A consumer who believes that a debt collector has broken federal or California debt collection laws may file a lawsuit against the debt collector. A customer does not have to do anything, such as register a complaint with a government body, to file a lawsuit. The consumer has sufficient grounds to file a case if the collector violates the law.
The debt collection regulations allow a customer to obtain monetary damages if they prevail in court. Both the California and federal debt collection rules stipulate that a successful consumer may be entitled to “actual damages.” In fair debt collection proceedings, emotional anguish (such as fear, worry, tension, and lack of sleep) is the most common type of damages. Based on the specifics of the harassing behavior in question, further kinds of damages may also be awarded.
The debt collection laws allow customers to reclaim a legal penalty in the event that they succeed in court. According to both the federal and California fair debt collection laws, a customer who prevails in court may be entitled to a penalty (up to a thousand dollars under federal law and between $100 and $1,000 in California). It is the consumer’s right to receive a penalty even in the absence of actual damages.
The reasonable debt collection laws allow a consumer to recoup legal expenses and expenditures in cases that they win. Both the California and federal debt collection statutes stipulate that a successful consumer may be entitled to reimbursement for expenditures and legal fees. For this reason, many law firms will accept debt collection claims on a contingent basis.
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