FDCPA Debt Collector Liability and Penalties 2

Question 1

Which government agency has primary rulemaking authority over the FDCPA for non-bank debt collectors?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

The Dodd-Frank Act transferred primary FDCPA rulemaking authority for non-bank entities to the CFPB.

Question 2

Can individual employees of a debt collection company be personally liable for FDCPA violations?

Accepted Answer

Yes, individuals who materially participate in violations can be personally liable

Answer

Courts have held that individuals who actively participate in FDCPA violations may be sued personally alongside the collection company.

Question 3

A debt collector violates the FDCPA. The collector's defense is that it relied in good faith on FTC guidance. Is this a valid defense?

Accepted Answer

Yes, relying on FTC formal guidance can serve as a defense

Answer

The FDCPA provides a defense when a violation results from reliance on official FTC advisory opinions or formal guidance.

Question 4

What type of damages can a consumer recover under the FDCPA beyond statutory and actual damages?

Accepted Answer

Attorney's fees and court costs

Answer

In addition to actual and statutory damages, the FDCPA authorizes recovery of the consumer's reasonable attorney's fees and court costs.

Question 5

A debt collector commits multiple FDCPA violations in a single collection letter. How many separate lawsuits can the consumer file?

Accepted Answer

One lawsuit covering all violations in the letter

Answer

Multiple violations arising from a single communication are generally treated as one cause of action in a single lawsuit, not separate suits.

FDCPA - Fair Debt Collection Practices Act Practice Test