Should You Sue Your Debt Collector?

Although it is perfectly legal for debt collection agencies to call debtors and ask that debts be repaid, sometimes their behavior crosses the line into what can be considered harassment. This guide will attempt to answer the question "Should you sue a debt collector?" You have the legal right to sue in either state or federal court, up to a year after the debt collection agency broke the law. You may be eligible for monetary damages, and the debt collector may have to pay your attorney's fees.

If you decide to sue a collector for a violation of the FDCPA (Fair Debt Collection Practices Act), follow these tips. Bringing a lawsuit is not easy, but it is possible. By acquiring a little knowledge beforehand, you can minimize the chance of your case being dismissed.

Do you have a case? The first thing you need to do is to figure out what the debt collector did wrong, and if it is actionable. If you were just inconvenienced a couple of times, the judge may dismiss the case because it lacks merit. Suing a bill collector is meant to "close out" a matter, and a lot of people get their cases thrown out of court because their cases are so flimsy. To decide if your case has merit, read some of the lawsuits filed by the FTC against various collection agencies.

Actionable cases against debt collection agencies typically involve threats, intimidation, harassment, name-calling, phone calls at late and early hours, and refusal to validate the debt. It is vital to document what you did before you filed the lawsuit, as well. Before you filed, you should have asked the debt collector to cease and desist. If you told them to stop calling you and they did not, you should follow up with a certified letter to the agency. After that, if they keep contacting you, you have proof that you asked them to stop and they did not.

If there are witnesses to the harassing acts by the bill collectors, take their notarized statements with you to court. If you sent the debt collector a debt validation request via certified mail but they failed to respond, you have fulfilled the burden of proof. Having a good paper trail can be the difference between losing and winning your case.

If your debt has already been settled or paid off, then the collection agency is legally barred from further collection attempts. Some agencies try to collect already-paid or time-barred debts from unknowing consumers. That is why it is so essential to document and validate the facts before you deal with a debt collection agency.

If your debt collector is guilty of a violation, you have the option to file complaints with the FTC (Federal Trade Commission) and the attorney general's office in your state. Though the FTC cannot directly respond to your case, they can close down a debt collection agency after they receive a sufficient number of complaints.