FDCPA Debt Collector Liability and Penalties 3 — Questions and Answers
Question 1: Which of the following is NOT an affirmative defense available to a debt collector under the FDCPA?
- The consumer's debt was legitimately owed (Correct answer)
- Bona fide error
- Reliance on FTC advisory opinion
- Reliance on judicial decision
Correct answer: The consumer's debt was legitimately owed
The fact that a debt is legitimately owed does not excuse FDCPA violations — the law governs collection conduct, not debt validity.
Question 2: A consumer files an FDCPA suit and wins $500 in actual damages and $1,000 in statutory damages. The court awards $5,000 in attorney's fees. What is the total recovery?
- $6,500 (Correct answer)
- $6,000
- $1,500
- $5,500
Correct answer: $6,500
The consumer recovers the sum of actual damages ($500) + statutory damages ($1,000) + attorney's fees ($5,000) = $6,500.
Question 3: The FTC historically enforced the FDCPA. After the Dodd-Frank Act, what role does the FTC play?
- The FTC retains enforcement authority but shares it with the CFPB (Correct answer)
- The FTC has no further role in FDCPA enforcement
- The FTC now only handles bank debt collectors
- The FTC became the sole FDCPA enforcer for all entities
Correct answer: The FTC retains enforcement authority but shares it with the CFPB
Both the FTC and CFPB can bring FDCPA enforcement actions, though the CFPB has primary rulemaking authority.
Question 4: A debt collector is sued for an FDCPA violation but demonstrates it maintained a written policy against the prohibited practice and trained employees. This most supports which defense?
- Bona fide error defense (Correct answer)
- Statute of limitations defense
- Good faith reliance on a court decision
- The consumer failed to mitigate damages
Correct answer: Bona fide error defense
Written policies and employee training are key components of the bona fide error defense under the FDCPA.
Question 5: Can a debt collector be held liable for an FDCPA violation even if it did not know its conduct violated the law?
- Yes, FDCPA liability is generally strict for most violations (Correct answer)
- No, intent to violate is required for all FDCPA claims
- Yes, but only for per se violations listed in the statute
- No, knowledge of illegality is always an element
Correct answer: Yes, FDCPA liability is generally strict for most violations
The FDCPA imposes strict liability for most violations — intent is irrelevant unless the collector invokes the bona fide error defense.
Question 6: A state law provides greater consumer protections than the FDCPA. Which law governs?
- The state law applies in addition to the FDCPA (Correct answer)
- The FDCPA preempts all state laws
- The state law is void as it conflicts with federal law
- Only federal courts can decide which law applies
Correct answer: The state law applies in addition to the FDCPA
The FDCPA expressly does not preempt state laws that provide greater consumer protections, so both may apply simultaneously.
FDCPA Debt Collector Liability and Penalties 3
Which of the following is NOT an affirmative defense available to a debt collector under the FDCPA?