FDCPA Debt Collector Liability and Penalties 1 — Questions and Answers
Question 1: What is the maximum statutory damages a consumer can recover from a debt collector in an individual FDCPA lawsuit?
- $1,000 (Correct answer)
- $500
- $2,500
- $5,000
Correct answer: $1,000
The FDCPA allows up to $1,000 in statutory damages per lawsuit for individual actions, regardless of actual damages.
Question 2: In a class action FDCPA lawsuit, what is the maximum statutory damages award?
- $500,000 or 1% of the collector's net worth, whichever is less (Correct answer)
- $1,000 per class member with no cap
- $5,000,000 regardless of net worth
- $250,000 or 5% of the collector's net worth
Correct answer: $500,000 or 1% of the collector's net worth, whichever is less
For class actions, FDCPA statutory damages are capped at $500,000 or 1% of the defendant's net worth, whichever is less.
Question 3: Under the FDCPA, who bears the burden of proof if a debt collector claims its violation was a 'bona fide error'?
- The debt collector must prove the error was unintentional and that procedures were in place to avoid it (Correct answer)
- The consumer must prove the collector intended to violate the law
- The court determines intent without either party bearing the burden
- The original creditor bears the burden on behalf of the collector
Correct answer: The debt collector must prove the error was unintentional and that procedures were in place to avoid it
The bona fide error defense requires the collector to show the violation was not intentional and resulted from an error despite maintaining reasonable procedures.
Question 4: How long does a consumer have to file an FDCPA lawsuit against a debt collector?
- One year from the date of the violation (Correct answer)
- Two years from the date of the violation
- Six months from the date of the violation
- Three years from the date of the violation
Correct answer: One year from the date of the violation
The FDCPA has a one-year statute of limitations running from the date the violation occurred.
Question 5: If a consumer prevails in an FDCPA lawsuit, who pays attorney's fees?
- The debt collector pays the consumer's reasonable attorney's fees (Correct answer)
- Each party pays their own attorney's fees
- The consumer pays their own fees but recovers costs
- The court awards fees from a federal fund
Correct answer: The debt collector pays the consumer's reasonable attorney's fees
The FDCPA mandates that a successful consumer plaintiff is entitled to recover reasonable attorney's fees from the defendant collector.
Question 6: A debt collector violates the FDCPA but the consumer suffers no actual damages. Can the consumer still recover?
- Yes, statutory damages of up to $1,000 are available without proving actual harm (Correct answer)
- No, proof of actual damages is required for any recovery
- Yes, but only if the violation was intentional
- No, unless the consumer can prove emotional distress
Correct answer: Yes, statutory damages of up to $1,000 are available without proving actual harm
Statutory damages exist precisely to allow recovery even when actual damages are difficult to quantify or prove.
FDCPA Debt Collector Liability and Penalties 1
What is the maximum statutory damages a consumer can recover from a debt collector in an individual FDCPA lawsuit?