Can I Sue For False Debt Collection?
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Can I Sue For False Debt Collection?
You obeyed the rules and paid your debts. But you got sent to collections anyway. Creditors need to play by the rules, too.
Your credit rating is very important. When a creditor sends you to a debt collection agency, the consequences can be devastating. And when a creditor makes a mistake in sending you to a collector, you can take steps to make things right. One of those steps is to sue. We tell you when and how.
Can I sue for false debt collection? The short answer is yes. Consumers can sue if a creditor has falsely reported them to debt collection. However, there are many ways that creditors, credit reporting agencies, and debt collectors can violate your rights. As a result, there are numerous ways to sue, numerous people to sue, and many pathways to recover for the damage someone else’s error has caused. Yes, you can file a collection agency lawsuit, but it’s important to sue the right people for the right legal violation to get you all the compensation you deserve.
In this article, I’ll explain what to do if you are wrongfully sent to collections. Consumer law attorneys who know the laws that protect you and know the evidence it takes to get you the compensation you deserve are the best resource for answers to questions you have about your situation. We can help you in your lawsuit against a collection agency.
Legal Rights Reminder: Did you know? If you’re wrongly sent to collections, you can dispute the error and seek compensation under the Fair Debt Collection Practices Act (FDCPA).
When Can You Sue a Company for Sending You to Collections?
Your credit score is very important. Your entire credit report is very important. It will determine whether you can get a mortgage, an auto loan, an apartment, or any kind of credit and at what interest rates. Your creditworthiness follows you and, to many lenders, defines you. Because of its importance, the laws demand that companies handle your credit report with care. You can sue them when they don’t use the appropriate and legally mandated levels of care, including when they harass you. A collection agency lawsuit often begins with one phone call from a collection agency that violates your rights.
A debt collection harassment attorney can assess your situation and determine if you have a case. Ask them, “Can I sue a creditor for false reporting?”
Your Rights: Laws Protecting You from Unfair Collections by Companies
Because your credit score is so important, lawmakers have created several laws to protect it.
The Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) protects you from inaccurate, outdated, misleading, or just plain wrong information in your credit reports. The FCRA requires credit reporting agencies to use the required amount of care and attention to make sure that the credit reports they sell to lenders are accurate. The FCRA also gives you the right to dispute any inaccuracies and requires credit reporting companies to correct the report.
The Fair Debt Collections Practices Act
The Fair Debt Collection Practices Act (FDCPA) protects you against abusive, deceptive, and unfair debt collection practices. The FDCPA prohibits debt collectors from contacting you at cretin times, limits the sort of things they can say to you, and provides guidance on how they should talk to you. In other words - it forbids collection agencies from harassing you and treating you unfairly. Like the FCRA, the FDCPA also says that debt collectors have to use a certain standard of care to make sure the information they give you is accurate and that you have the right to dispute the information if you believe it to be inaccurate.
The Consumer Credit Protection Act
The Consumer Credit Protection Act (CCPA) is another law that prohibits abusive and unfair debt collection practices. The CCPA limits wage garnishment, requires creditors to clearly state the terms at which borrowers are borrowing money, and sets some standards and protocols for how debt collectors can go about collecting debts. The law exists to protect consumers from unfair and deceptive lending and debt-collecting tactics.
False debt collection claims can severely damage your credit score, even if you don’t owe the debt. Protect yourself by knowing your rights!
The Truth in Lending Act
Because you should know the repayment terms of the money you are borrowing, the Truth in Lending Act (TILA) requires lenders to adequately inform you about the costs and terms of the loans and credit you are getting. The TILA provides that lenders must clearly tell you all about the fees, interest rates, penalties, and repayment terms.
Essential Steps
If you believe that a lawsuit against a creditor or debt collection agency is appropriate, there are a few things you should do. To begin a lawsuit against a creditor for incorrect reporting you should:
Confirm Debt Collection is Wrong
The FDCPA requires the debt collector to send you a debt validation letter if you ask for one. If a debt collector calls you and you’re certain you have already paid the debt, request a debt validation letter from the debt collector. This letter will detail the amount of debt you owe and who the creditor is.
Important Step: Always request a debt validation letter when contacted by a collection agency. This ensures they have accurate details of what you owe—if anything.
Contact an Attorney
Contact Consumer Attorneys if you are wrongly sent to collections. One of our experienced consumer protection attorneys will assess your case, offer legal advice, and give you next steps. An attorney will also tell you how to do things so that you do not waive any future rights to sue. We have experience in getting favorable compensation for plaintiffs in a lawsuit against a collection agency.
Gather Evidence
Document every communication you have or have ever had with both the debt collector and the creditor. If you have paid off the debt with the creditor, collect any records about that debt. This could include emails, letters, screenshots of texts, and call logs. Gather relevant financial records to prove payments or discrepancies. Document any harassment or illegal practices by the collector.
Feel Free to Contact Us – We're Ready to Assist You
Someone is available to talk to you 24 hours a day.
- Call us anytime toll-free at 1-877-615-1725.
- Email us at info@consumerattorneys.com.
- Submit a free consultation request form.
- Have a live chat with a representative.
Again, we are eager to talk with you, eager to hear your story, and eager to help you however we are able.
Frequently Asked Questions
To win a false debt collection lawsuit, you will need evidence. The best evidence you can present will be all the records of any communication you have had with both the debt collector and the creditor. If you have paid off the debt with the creditor, collect any records about that debt. This could include emails, letters, screenshots of texts, and call logs. Gather relevant financial records to prove payments or discrepancies. Document any harassment or illegal practices by the collector. The Fair Debt Collection Practices Act (FDCPA) requires a debt collector to send you a letter detailing the amount you owe, the creditor, and your right to dispute it. Request this from the collector. Also, request a credit report. A lawyer can help you organize your evidence.
The best resource for identifying legal requirements and limitations is an experienced consumer protection lawyer. There are many legal requirements. These requirements originate from the standard rules of civil procedure along with laws affording flights and imposing responsibilities on both debtors and creditors. Those laws include the Fair Credit Reporting Act, the Fair Debt Collections Practices Act, the Consumer Credit Protection Act, and the Truth in Lending Act. A credit attorney will listen to you, assess the debt collection practices that you have experienced, apply those relevant laws to your circumstances, and determine the best course of action and strategy for getting you compensation for the damage the debt collector and the creditor that reported you to them have caused you. An attorney will also be able to navigate the procedural requirements of a lawsuit - like filing within the statute of limitations, gathering evidence, filing the lawsuit in the most suitable court, and adding all the defendants.
It is not necessary to hire an attorney for false debt collection lawsuits, but hiring an experienced consumer protection lawyer will make the process easier for you and is a better way to make sure you are compensated fairly. attorney is advisable. Plaintiffs who file lawsuits against debt collectors are engaging in a legal battle with large companies that frequently defend themselves against these claims. They know what they are doing. You should have someone who knows the relevant laws related to debt collection, the best courts in which to file a lawsuit, and the procedures that propel a lawsuit toward its conclusion - compensation for you. Contact Consumer Attorneys to discuss. A conversation with one of our lawyers will be helpful.
You only pay us if you recover. You pay us nothing upfront. We take a portion of your award or settlement for the damages caused by the company that sent you to debt collections and the debt collectors. And, in many situations, you can recover those fees. This is all we do; we are good at it; we have recovered some significant amounts for consumers who have been wronged by the carelessness or downright illegal actions of creditors and debt collection agencies; we are proud and eager to represent consumers. The first step is a conversation with one of our consumer protection attorneys.
You can call us anytime toll-free at 1-877-615-1725. You can email us at info@consumerattorneys.com. You can visit our website and submit a free consultation request form. Or you can visit our website and have a live chat with a representative. Again, we are eager to talk with you, eager to hear your story, and eager to help you however we are able.
Daniel Cohen is the Founder of Consumer Attorneys. Daniel manages the firm’s branding, marketing, client intake and business development efforts. Since 2017, he is a member of the National Association of Consumer Advocates and the National Consumer Law Center. Mr. Cohen is a nationally-recognized practitioner of consumer protection law. He has a we... Read more
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