Debt Collection Laws & Compliance Flashcards

In an individual FDCPA action, what is the maximum amount of additional (statutory) damages a court may award beyond actual damages?

Answer: $1,000

FDCPA §1692k caps individual statutory damages at $1,000 per action, in addition to actual damages and attorney's fees.

In an FDCPA class action, total additional damages to the class members are capped at what amount?

Answer: The lesser of $500,000 or 1% of the collector's net worth

Class statutory damages are limited to the lesser of $500,000 or 1% of the debt collector's net worth.

Within what time must a consumer generally bring a private civil action for an FDCPA violation?

Answer: One year from the date of the violation

FDCPA §1692k(d) sets a one-year limitations period for civil actions.

A collector avoids FDCPA liability for an unintentional violation if it shows the violation resulted from a bona fide error and what else?

Answer: It maintained procedures reasonably adapted to avoid such errors

The bona fide error defense requires an unintentional error despite procedures reasonably adapted to avoid it.

Under the FCRA, when a furnisher receives notice of a dispute from a consumer reporting agency, it must generally complete its investigation within what period?

Answer: 30 days (extendable to 45 in certain cases)

Furnishers must investigate CRA-forwarded disputes within the FCRA's 30-day reinvestigation period, extendable to 45 days if the consumer provides additional information.

Under the TCPA, what must a collector generally have before placing autodialed or prerecorded-voice calls to a consumer's cell phone?

Answer: The consumer's prior express consent

The TCPA requires prior express consent for autodialed or prerecorded calls to wireless numbers.

Which entity is generally NOT a 'debt collector' under the FDCPA?

Answer: An original creditor collecting its own debts in its own name

Creditors collecting their own debts under their own name are generally excluded from the FDCPA definition.