What are the penalties for violating the law?
As with most consumer legislation, Congress recognized that despite the very best efforts of businesses, occasional errors would be made. Taking this into account, the law provides protection for the ethical collector who may make an occasional error if that collector has “reasonable procedures” to avoid unintentional violations. Collectors, however, are subject to civil suits that will award the successful consumer his actual damages, reasonable attorney’s fees and additional damages of up to $1,000. There are also provisions for class action suits against collectors. Before suing a debt collector, all consumers should be aware that the law also protects the ethical collector against nuisance or harassing lawsuits. If the court finds that a consumer’s lawsuit was brought in bad faith and for the purpose of harassment, the consumer may be required to pay the cost of the collector’s defense.
