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Recent News In December 2007 my office received a judgment in United District Court for more than $30,000 against a debt collector who harassed a Massachusetts consumer and invaded her privacy by revealing the existence of debt to a third-party.

1. Introduction

When abusive debt collectors break the law, individuals have the right to sue for damages. Many debt collectors make their living by routinely breaking the law and paying out money damages to the occasional person who sues them. This is bad for society, but it can be good for people who know their rights and are motivated enough to enforce them. The information below is meant to help you understand the process of bringing a law suit against a debt collector under the Fair Debt Collection Practices Act (“FDCPA”).
 

Most FDCPA cases settle early (one to two months), but you must be willing and able to go to trial and testify before bringing a case. 

2. Damages

There are two types of damages in an FDCPA case, statutory and actual. Everyone gets statutory damages of up to $1,000 if they prove a violation of the FDCPA. In settlements consumers almost always receive at least $1,000. Additional damages are also available. So-called "actual damages" are things like out-of-pocket losses and emotional distress. In order to recover money for emotional distress you generally have to have specific physical symptoms of the distress, like loss of sleep, anxiety attacks, loss of appetite, etc. If you have any symptoms of emotional distress that were caused by a debt collector write them down as soon as you can and share them with me. Damages for emotional distress vary, but usually are anywhere from $500 to tens of thousands of dollars, depending upon the severity.

3. Attorney’s Fees

You pay no attorney’s fees. The debt collector must pay your attorney’s fees upon successful judgment or settlement. If there is no successful judgment or settlement, you do not have to pay fees.

4. Costs

You will be responsible for court-related costs. The upfront cost is the federal court filing fee of $350.¹ However, everyone must pay part of their filing fee to demonstrate their real commitment to the case.

5. Initial Preparation

You must prepare a written timeline of what the debt collector did to you. It does not need to be anything fancy; just lay out what you remember. Use quotations when you can and describe what the debt collector said to you and/or third parties as much detail possible. Please email this to me.

6. Ongoing Involvement

Many cases settle early with no real involvement from the client. The vast majority of cases are filed, the lawyers negotiate and conduct discovery, a settlement is reached, and the client is paid. However, sometimes a defendant will not settle reasonably and a case must go to trial. If this happens you must make yourself available to testify at a deposition and at trial. You must also respond to my requests and attempts to communicate with you.

7. Settlement

If your case settles like most do, I will need to get your approval of the settlement terms. The settlement terms will set forth approximately how much in damages you get and how much in attorney’s fees and costs will be paid. Attorney’s fees and costs are usually more than the damages in a case because even a case that settles requires considerable attorney time. An example of a settlement would be a lump sum of $5,000 -- with the client receiving $2,000 and the attorney receiving $3,000 to reimburse fees and costs. This is only an example to show you a settlement might work.


Please let me know if you if you have any questions.

¹ If you have a strong case and can not pay the filing fee in full, I will sometimes contribute towards the filing fee if you are facing severe financial hardship.  If you need help with the filing fee, please bring it up the first time we communicate.

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