FDCPA Debt Collector Liability and Penalties

Question 1

What is the maximum statutory damages a consumer can recover from a debt collector in an individual FDCPA lawsuit?

Accepted Answer

$1,000

Answer

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?

Accepted Answer

$500,000 or 1% of the collector's net worth, whichever is less

Answer

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'?

Accepted Answer

The debt collector must prove the error was unintentional and that procedures were in place to avoid it

Answer

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?

Accepted Answer

One year from the date of the violation

Answer

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?

Accepted Answer

The debt collector pays the consumer's reasonable attorney's fees

Answer

The FDCPA mandates that a successful consumer plaintiff is entitled to recover reasonable attorney's fees from the defendant collector.

FDCPA - Fair Debt Collection Practices Act Practice Test

FDCPA - Fair Debt Collection Practices Act Practice Test

FDCPA Debt Collector Liability and Penalties