FDCPA Legal Actions and Court Procedures 1 — Questions and Answers
Question 1: Under the FDCPA, in which venue may a debt collector file a lawsuit against a consumer?
- Where the consumer resides or where the contract was signed (Correct answer)
- Any federal district court in the United States
- Only where the original creditor is headquartered
- Where the debt collector's principal office is located
Correct answer: Where the consumer resides or where the contract was signed
The FDCPA restricts collectors to filing suit only in the judicial district where the consumer resides or where the contract was signed.
Question 2: A collector files suit against a consumer in a court 500 miles from the consumer's home. This is:
- An FDCPA violation — venue must be where the consumer lives or signed the contract (Correct answer)
- Permissible if the debt exceeds $5,000
- Permissible in federal court regardless of distance
- An FDCPA violation only if the consumer objects within 30 days
Correct answer: An FDCPA violation — venue must be where the consumer lives or signed the contract
Filing suit in an improper venue is itself an FDCPA violation because it creates an unfair burden on the consumer.
Question 3: Can a debt collector threaten to sue a consumer on a debt that is past the statute of limitations?
- No, threatening to sue on time-barred debt is an FDCPA violation (Correct answer)
- Yes, the threat is legal even if suit cannot be filed
- Yes, if the collector discloses the debt is time-barred
- No, only if the consumer requests validation first
Correct answer: No, threatening to sue on time-barred debt is an FDCPA violation
Threatening legal action the collector cannot legally take — such as suing on a time-barred debt — is a false and deceptive practice under the FDCPA.
Question 4: A collector actually files suit on a time-barred debt. Is this an FDCPA violation?
- Yes, filing suit on a time-barred debt without disclosing this fact violates the FDCPA (Correct answer)
- No, filing suit is always a legal action beyond FDCPA reach
- No, the FDCPA only regulates communications, not court filings
- Yes, but only if the consumer raises the limitations defense
Correct answer: Yes, filing suit on a time-barred debt without disclosing this fact violates the FDCPA
Courts have held that filing suit on a time-barred debt without disclosure is a deceptive practice prohibited by the FDCPA.
Question 5: Under the FDCPA, which of the following is a 'false representation' regarding legal action?
- Threatening arrest for failure to pay a civil debt (Correct answer)
- Informing a consumer a lawsuit has been filed when it has
- Advising a consumer they may be sued if payment is not made
- Sending a letter from the collector's in-house attorney
Correct answer: Threatening arrest for failure to pay a civil debt
Threatening arrest for non-payment of a civil debt falsely implies criminal consequences and is a per se FDCPA violation.
Question 6: A collector obtains a default judgment against a consumer. May the collector immediately garnish the consumer's wages?
- Only if the judgment is valid and garnishment is permitted by state law (Correct answer)
- Yes, a default judgment automatically authorizes wage garnishment nationally
- No, wage garnishment requires a separate federal court order
- Yes, but limited to 50% of disposable earnings
Correct answer: Only if the judgment is valid and garnishment is permitted by state law
Wage garnishment after a judgment is governed by both federal law (Consumer Credit Protection Act limits) and state law, not automatic upon judgment.
FDCPA Legal Actions and Court Procedures 1
Under the FDCPA, in which venue may a debt collector file a lawsuit against a consumer?