What are the penalties for a collector who violates California or Federal Fair Debt Collection Laws ?
A debt collector can be subject to statutory penalties of $100 to $1,000 if they willfully and knowingly violated any portion of the Rosenthal Act. A debt collector’s defenses are limited to curing violations within 15 days (assuming the violation is curable), or showing by preponderance of evidence that their actions were unintentional and happened despite having procedures that were reasonably adapted to avoiding such violations. All actions have a one (1) year statute of limitations. Reasonable attorneys’ fees and costs must be awarded to the prevailing debtor. Reasonable attorneys fees and costs may only be awarded to the prevailing creditor upon a showing that the debtor did not bring the action in good faith. Civil Code 1788.
