According to the Consumer Financial Protection Bureau (CFPB), 25% of all American consumers report feeling threatened by debt collectors. The CFPB also notes that one in seven consumers has been sued by debt collectors. Tennessee residents who find themselves in this situation should know that they can fight back. While debt collectors can certainly sue debtors, the reverse is also true. In fact, consumers are constantly suing – often via class action lawsuits against debt collectors. The Federal Trade Commission (FTC) lists countless banned debt collectors that have faced negative legal consequences for unethical and illegal activities. This misconduct includes charging consumers for items they never purchased, threatening physical violence, and pursuing debts that had expired under the statute of limitations. Consumers who are experiencing this type of misconduct should speak with experienced civil litigation lawyers in Tennessee. Consider exploring this topic further with King Law Offices. We serve residents of Johnson City, Washington County, so contact (888) 748-5464 to get started with an action plan.
When Can I Sue Debt Collectors in Tennessee?
Consumers can sue debt collectors under various circumstances in Tennessee. If organizations violate any laws while interacting with consumers, they may face legal action – including class action lawsuits against debt collectors.
Fair Debt Collection Practices Act Violations Can Lead to Class Action Lawsuits Against Debt Collectors
All debt collectors in the United States must adhere to the Fair Debt Collection Practices Act (FDCPA). This is a federal law that applies to all debt collectors in the country. As the Federal Reserve notes, this law does not apply to debt related to corporate, business, or agricultural activities. The FDCPA also covers only those collecting debt on behalf of another entity. If an entity collects debt under its own name, the law does not apply. Finally, mortgages and student loans are not covered by the FDCPA.
The FDCPA bans debt collection activities outside of usual hours, from 8:00 AM to 9:00 PM each day. This law may also ban debt collectors from contacting consumers at their workplaces. Perhaps most notably, the FDCPA gives each consumer the right to refuse all further communications from debt collectors. As long as a consumer makes this request in writing, the debt collector must cease all further attempts at contact. Finally, the FDCPA bans abusive conduct such as threatening violence, profane language, harassment, and outright lies during collection activities. The Federal Reserve notes that any debt collector who violates the FDCPA becomes liable for actual damages, punitive damages, and attorney fees. In other words, consumers can sue debt collectors for violating the FDCPA – and this is something King Law Offices can assist with.
The Tennessee Consumer Protection Act
Aside from the FDCPA, consumers also enjoy protection under the Tennessee Consumer Protection Act (TCPA). Although the two laws are very similar, there are a few notable differences to consider. First, the TCPA is a state law, while the FCPA is federal. Secondly, the TCPA bans a wider range of abuse and harassment, potentially making it easier for consumers to sue debt collectors. Consumers who believe they have experienced this type of misconduct can file complaints with the Division of Consumer Affairs (DCA). These complaints can lead to lawsuits, and debt collectors can become liable for the damages they cause. Finally, the TCA offers unique protections to elderly individuals, minors, and veterans.
What Is a Debt Collection Class Action Lawsuit?
If debt collectors engage in misconduct banned under federal or state laws, they may face class action lawsuits. In a normal lawsuit, there is only one “plaintiff” or consumer. In a class action lawsuit, many consumers join together and consolidate their claims. This is relatively common in the context of debt collection lawsuits, as class action lawsuits may offer various advantages:
First, class action lawsuits against debt collectors can offer greater compensation compared to normal lawsuits. The negotiating power of multiple plaintiffs can be overwhelming for even the biggest debt collection companies, and this may cause them to offer more generous settlements. Most debt collectors do not want to go to court due to the cost of legal fees. Litigation is particularly risky because if debt collectors lose, they often have to pay the legal fees of the plaintiffs. While these lawsuits can be more expensive for debt collectors, they can be cheaper for plaintiffs. When multiple consumers file class action lawsuits together, they can share legal fees more easily.
How Do I Join a Class Action Lawsuit Against a Debt Collector?
Consumers who wish to join class action lawsuits should raise this issue with experienced civil litigation attorneys. During a consultation with one of these legal professionals, consumers can inquire about potentially joining class action lawsuits. Lawyers can then check to see whether this is possible. A lawyer might also start a new class action lawsuit before attempting to locate other plaintiffs who have suffered similar misconduct at the hands of the same debt collector. Alternatively, lawyers may recommend that their clients pursue normal lawsuits against debt collectors. Ultimately, the most appropriate choice depends on the specific circumstances of each case.
Contact King Law Offices for More Information About Class Action Lawsuits
While internet research may highlight the possibility of class action lawsuits against debt collectors, it may be difficult to determine whether legal action is possible through online reading alone. If a consumer suspects they have experienced illegal or unethical debt collection activities, they should explore these suspicions further alongside experienced civil litigation lawyers in Tennessee. These legal professionals will likely have a greater understanding of what constitutes illegal behavior by debt collectors. They may also help consumers join class action lawsuits against debt collectors. If this is not possible, a normal lawsuit against a debt collector may still be a viable pathway. Due to these varying factors, it makes sense for consumers to discuss their unique circumstances with King Law Offices. Contact us at (888) 748-5464 to get started. Aside from Tennessee residents, we also serve those in North Carolina and South Carolina.
