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.
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The Fair Credit Reporting Act (FCRA) protects you from inaccurate, outdated, misleading, or just plain wrong information in your credit reports.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.
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.
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.
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Again, we are eager to talk with you, eager to hear your story, and eager to help you however we are able.
