Debt Collection Laws: Can I Sue a Debt Collector or Collection Agency?
Debt Collection Laws: Can I Sue a Debt Collector or Collection Agency? Tuesday June 24, 2008Yes, federal law permits individuals, and groups of individuals to sue collection agencies. But you must sue within one year of any alleged violation of your rights. If you do win, you can only recover damages suffered, plus an additional amount of up to $1,000. Your award may also include recovering court costs and attorneys fees. Debt collectors are generally not too fearful of being sued because of the financial limits on what you can get back. It may also be difficult to prove that your rights were violated, and the burden of proof will be on you. But if you know your rights, you may be able to stop illegal debt collection