Re: Has anyone ever sued a Collection Agency?

Posted by Drew (24.59.27.46) on November 25, 2003 at 23:57:36:

In Reply to: Re: Has anyone ever sued a Collection Agency? posted by LadynRed on November 25, 2003 at 10:18:07:

LadyNRed,

I got different information. I visit this collection board just to observe and this topic has been brought up before. In one case, an original creditor (can't find the thread right now) was sued due to the collection agency he hired. THe collection agency had numerous violations and the amount he settled for almost wiped out his business. It was a heft case due to the numerous violations. Several other collectors have commented as well of having to settle big cases and having to be really careful. A collection agency can handle $1000 per action suits becuase that is part of business, but $1000 per violation is a different thing becuase it can turn really costly.

Also Scott as picantel gave advice that it is 1000 per violation.

Here is the copy and paste of the information I recieved.

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Hi all:

I just had a question about non-compliance with the FCRA and consumers bringing suits for damages.

Has anyone gone to court by a consumer that has filed violation of the FCRA and had to pay? People over on the credit boards seem to think that you get $1,000 PER violation. The way I read the law is that it's damages sustained or $100-$1,000 damages, whicever is greater.

Anyway, I was just wondering if it really is $1,000 per violation or is it up to $1,000 per suit without the showing of additional damages? I just can't believe that, say, a CA doesn't respond to validation and reages an account that a consumer could sue for $2,000. It just doesn't seem to jive with what I've read in the FCRA.

Does anyone have any first-hand knowledge?

Thanks!

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picantel
Member

Posts: 182
Joined: Oct 2002
Friday 07/25/03 11:38 PM

The FCRA allows for up to $1000 per violation. The FDCPA allows up to $1000 for all the violations put together. A CA can violated 100 different statutes of the fdcpa but you are still getting only $1000 max. If the CA violates 100 different statutes of the fcra you can sue for up to $100,000.

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