When you’re in a financial bind, it may feel like the deck is stacked against you. Your creditors and debt collectors want you to believe that, so that you’ll feel powerless and give in to their demands. However, federal law and the laws of many states protect offer significant protection to people facing financial problems.
These state and federal statutes are powerful tools, and we put them to work for people around the country every day. When a creditor or debt collector violates these statutes, we can sue them. In many cases, a lawsuit for debt collector harassment, inaccurate credit reporting or other violations of consumer financial protection laws can mean money in your pocket.
Some of the most powerful consumer protection statutes include:
The FDCPA is a federal statute requiring debt collectors to verify information when you dispute a debt, and to cease collection activity until that verification is complete. The law also prohibits third-party debt collectors from engaging in a variety of dishonest and abusive practices such as making false threats, disclosing information to other people and using obscene language. In some cases, debt collectors who violate the FDCPA may have to pay you up to $1,000.
The FCRA is a federal law that protects your credit data by limiting disclosure and by creating rules regarding when and how creditors and debt collectors may report information to credit bureaus. The statute provides a procedure for challenging inaccurate information on your credit report, and allows for monetary damages when either creditors / collection agencies or the credit reporting agency itself breaks the rules.
The bankruptcy discharge is a declaration that you’re no longer legally obligated to pay those debts. However, some creditors and debt collectors ignore the discharge and continue collection attempts, sell the discharged debt to a debt buyer or continue to report a past due balance to credit reporting agencies. To make sure that doesn’t happen, the court enters an injunction along with the discharge, prohibiting all of those activities and more. When a creditor or debt collector violates the discharge injunction, we can sue to stop the activity and possibly collect damages for you.
These are some of the most powerful tools in our arsenal, but they’re far from the only ones. A variety of state and federal laws protect consumers from debt collector harassment, misrepresentation and abuse. Learn more at the Department of Consumer Protection.
If creditors and collection agencies are making your life difficult with illegal tactics and over-the-top collection efforts, we can help. Talk to us today to find out how you can hold creditors and debt collectors accountable, put an end to the stress and possibly collect damages.
Upright Law has been very patient and answered all the questions I asked. Having never needed a lawyer or filed bankruptcy I was rather anxious about stepping into this procedure.
Everyone that I have dealt with was very kind even when I thought I was probably bothering them with every little thing that I thought of.
This is all very stressful for me, especially because I was very ill and worrying every month about medical tests. I have never felt so less in control than I do now so I am very grateful for all the help that has been given me.Jane M. Maine