LTD Financial Services agreed to a settlement with the Federal Trade Commission to resolve nearly 1,500 complaints of illegally threatening and misleading debtors. This settlement was announced without any acknowledgment of wrongdoing.
And so after this big settlement, you may be surprised that not a dime of it is going to the victims of harassment. Instead, it amounts to penalties owed to the federal government. It is still up to individual victims to sue for civil damages.
Civil penalties for illegal debt collection tactics are allowed, but somewhat uncommon. Most people simply do not understand their rights under the Fair Debt Collection Practices Act.
Proof of violations can result in substantial judgments against rogue debt collectors. If you have solid proof of wrongdoing, it may be in your best interests to stand up for your rights.
You could sue for damages that could potentially exceed the debt balance. Imagine wiping out the debt and receiving an additional payment. There may be additional risks or costs associated with pursuing legal actions.
If you are leery about pressing a lawsuit, then you may wish to pursue private mediation. This is one potential remedy available through the Fair Debt Collection Practices Act that is widely unknown.
In this case, LTD Financial Services often threatened to garnish wages to force debt repayment. However, the collector did not back these threats up with legal action. It is illegal for a debt collector to threaten action that they do not actually intend to take.
Know your rights and protect yourself. Never let abusive debt collectors violate the law at your expense.
Tags: debt collection