February 26, 2010, Newsletter Issue #149: Fair Debt Collection Laws

Tip of the Week

About fair debt collection act:

Except as otherwise provided, a debt collector who fails to comply with the provisions of the FDCPA with respect to any person is liable to such person as amouont equal to the sum of:
-any actual damages sustained as a result of the failure;
-such additional damages that the court may allow, but not exceeding $1,000;
-in the event of a class action, not to exceed $500,000 or 1% of the net worth of the debt collector;
-costs of the legal action, together with reasonable attorney's fees allowed by the court.

In determining the amount of damages, the court will consider the frequency and persistence of noncompliance. The action may be brought in any United States District Court without regard to the amount in controversy, or in any other court of competent jurisdiction within one year from the date the violation occurred.

All of the functions and powers of the Federal Trade Commission are available to enforce compliance with the Fair Debt Collection Act.

The FDCPA does not affect or except any person from complying with the fair debt collection laws of any state with respect to debt collection practices except to the extent that these laws are inconsistent with any provisions of the FDCPA, and then only to the extent of the inconsistency. A state law is not inconsistent with the Act if it allows greater consumer protection.

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