If all else fails, you may consider asking the courts for help. Suing in small claims court has sometimes been called the "poor man's class action lawsuit". Not only can this be effective in helping to solve your immediate problem, it can help effect long-term changes in some of the credit and collections practices. If enough consumers are successful in enforcing the consumer protection laws, which will cost these corporations real dollars to fight and in judgments paid, ultimately, their practices will change to cost them less money.
The best part is, a single violation of consumer protection laws can make the violator liable for $1,000 to $2,500 in statutory (that means automatic) damages, once you prove the violation in court. The very reason for these statutory damages is to encourage consumers to take these violators to court.
Who |
Why |
Precedent/Law |
Damages |
Creditors that report your credit history inaccurately |
Defamation, financial injury |
Nelson vs. Chase Manhattan US Court of Appeals, Ninth Circuit, No. 00-15946, decided 03-01-2002 |
Damages incurred by injured party, as proven in court |
Creditors that pull your credit report without permissible purpose |
Injury to your credit report and credit score |
FCRA § 604 (a)(3)
Andrews v. TRW Inc. US Court of Appeals, Ninth Circuit, 225 F.3d 1063, decided 10-04-2000
FTC Staff Opinion Letters:
Coffey,
Bauchner,
Throne,
Gowen,
Benner,
Woolford,
Landever,
Long,
Tatelbaum,
Tatelbaum (#2)
|
Statutory damages of $2,500 for each proven violation |
Creditors, Collection Agencies, or Credit Bureaus that 're-age' your account by falsely updating the date of last activity on your credit report to keep negative information longer on your report |
Consumer protection provided in the FCRA |
FCRA § 605 (c) |
Statutory damages of $1,000 for each proven violation |
Credit Bureaus that fail to respond to your written disputes within 30 days (though they get a 15 day extension if they receive information from the creditor within the first 30 days) |
Consumer protection provided in the FCRA |
FCRA § 611 (a)(1)
FTC Staff Opinion Letters:
Tabler,
Cohan (#2)
|
Statutory damages of $2,500 for each proven violation |
Credit Bureaus that reinsert a deleted item from your credit report without notifying you in writing within 5 business days |
Consumer protection provided in the FCRA |
FCRA § 611 (a)(5)(B)(ii) |
Statutory damages of $2,500 for each proven violation |
Credit Bureaus that refuse to correct information after being provided proof of their error |
Defamation, willful injury, consumer protection provided in the FCRA |
FCRA § 623
Cushman v. Trans Union Corporation US Court of Appeals for the Third Circuit Court, 115 F.3d 220, filed D.C. No. 95-cv-01743, decided 06-09-1997 |
Damages incurred by injured party, as proven in court
Statutory damages of $2,500 for each proven violation |
Collectors that call you after 9 pm at night or before 8 am in the morning |
Consumer protection provided in the FDCPA |
FDCPA § 805 (a)(1) |
Statutory damages of $1,000 for each proven violation |
Collectors that call you at job if they know or have reason to know (because you told them) that your employer prohibits you from receiving such calls |
Consumer protection provided in the FDCPA |
FDCPA § 805 (a)(3) |
Statutory damages of $1,000 for each proven violation |
Collectors that call any third party, such as friends, neighbors, relatives, etc., about your debt; exceptions: they may contact your attorney, consumer reporting agencies, the creditor or the attorney of the creditor, or the attorney of the debt collector |
Consumer protection provided in the FDCPA |
FDCPA § 805 (b)
FTC Staff Opinion Letters:
LaScuola,
Halverson,
Jones,
Borowski,
Zbrzeznj,
Fisher,
Atteberry,
Kwait
|
Statutory damages of $1,000 for each proven violation |
Collectors that continue to call or write after you have sent a 'stop contacting me' letter |
Consumer protection provided in the FDCPA |
FDCPA § 805 (c) |
Statutory damages of $1,000 for each proven violation |
Collectors that harass or abuse** |
Consumer protection provided in the FDCPA |
FDCPA § 806 |
Statutory damages of $1,000 for each proven violation |
Collectors that claim they will garnish your wages, seize property, or have you arrested *** |
Consumer protection provided in the FDCPA |
FDCPA § 807
FTC Staff Opinion Letters:
Klayman
|
Statutory damages of $1,000 for each proven violation |
Collectors that- Cash a post-dated check before the date on the check
- Cost you money by making you accept collect calls or COD mail
- Take or threaten to take any personal property without a judgment
|
Consumer protection provided in the FDCPA |
FDCPA § 808 |
Statutory damages of $1,000 for each proven violation |
Collectors that do not validate your debt, yet continue to pursue collection activity (file suit, call or write you) |
Consumer protection provided in the FDCPA |
FDCPA § 809 (b)
Spears v. Brennan Indiana Court of Appeals, 745 N.E.2d 862, No. 49A02-0003-CV-169, decided 03-26-2001
FTC Staff Opinion Letters:
Mezines,
Cass,
Berger,
Bergstrom,
Castle,
Miller,
Wollman,
Krisor (#2)
|
Statutory damages of $1,000 for each proven violation |
Collectors that have not validated your debt, but they still continue to report to the credit bureaus |
Consumer protection provided in the FDCPA |
FDCPA § 809 (b)
FTC Staff Opinion Letters:
Mezines,
Cass,
Berger,
Bergstrom,
Castle,
Miller,
Wollman,
Krisor (#2)
|
Statutory damages of $1,000 for each proven violation |
Collectors that try to sue you in a county which is not where you now live or where you lived when you signed the original contract |
Consumer protection provided in the FDCPA |
FDCPA § 811 (a) (2)
Yu v. Signet Bank California Court of Appeal, First Appellate District, Division Four, 69 Cal. App. 4th 1377, decided 02-16-1999
FTC Staff Opinion Letters:
Krisor
|
Statutory damages of $1,000 for each proven violation
Cause to have judgement obtained in violation of this provision vacated |