Debt Collection Laws
Fair debt laws prevent debt collectors from using unfair collection practices. These laws allow victims of debt collection abuse to recover cash compensation from collectors, and require the debt collectors to pay the victim's attorney’s fees.
Creditors and debt collectors have a limited time window in which to sue debtors for nonpayment of credit card and other debts. Debts that are past the statute of limitations may be uncollectable and unreportable on your credit report. In some situations, you may even be able to sue the company for violating your consumer rights.
Under The Fair Debt Collection Practices Act, you have the right to sue a debt collector who violates the law. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney's fees can also be paid for by the debt collector or collection agency.
The Fair Credit Reporting Act or the FCRA regulates the practices of those who provide credit information of individuals to a credit bureau, the credit bureau and of the credit information users. The credit bureau checks to match the names, addresses and other identifying information of the credit applicants with those available in the files of the bureau. This information is used by lenders to determine an individual's credit worthiness or the ability to repay a debt. The FCRA states that a consumer can make a legal claim against and sue if a credit bureau, the credit report users, and/or the debt collectors disseminate wrong credit information.