R.C. Lim, Attorney and Counselor at Law

The Fair Debt Collection Practices Act

1. Autodialer Calls to Cell Phones

Recently, my wife’s cellular phone was repeatedly called by an autodialer debt collection company on a somewhat miniscule debt owed to Blockbuster. Since I am a consumer bankruptcy attorney, I was vaguely aware of the statute, but this led me to investigate the Fair Debt Collection Practices Act, or the FDCPA.

The FDCPA makes illegal the use of autodialers to cellular phones with a $500 penalty per violation for negligent acts and a $1,500 fine for intentional acts. After my call to clarify the debt, I told the operator that it was my understanding that such calls were illegal and asked if there was someone who might want to comment on the matter. I was instantly transferred to the company’s attorney who very politely explained that it was his understanding that such calls are legal. I came back to the office and was able to verify the company’s violation in a second. I believe this certainly raises the specter that they are in deliberate violation of federal law, which may mean that I can sue for the additional treble damages. It is baffling to me that a collection company would risk so much to gain so little. In this case, there is recorded evidence of the violation and cell phone records of each and every call meaning that the company has risked damages of over $15,000 to collect on a  measly $25 debt.

No doubt they are used to dealing with debtors who have no knowledge of the law and are sufficiently embarrassed of their circumstance to pursue their legal rights.

So what other categories of behavior are prohibited under the FDCPA?

2. Threats and Lies

If they identify themselves as someone they are not.

If they speak of lawsuits or legal remedies but they have not been filed or pursued, this is a violation.

3. Disclosures to Unrelated Third Parties

If anyone else overhears the call on a machine or through your telephone, bingo.

If the debt collector calls your place of work and discloses your debt to anyone, there is a violation.

4. Failure to Identify Themselves

By law, debt collectors must identify themselves and the purpose of their call. Failure to perform this mini-Miranda is against the law.

If you believe that you have been subjected to a violation of the FDCPA, contact our office for a consultation. You might also refer to the following sites for additional information:

TCPALaw.com

AlabamaConsumerLaw.com

Visa In Cahoots with Banks

The New York Times has a fascinating story on how Visa worked over small businesses to double its fees.

It’s another fine example of unfettered capitalism hurting consumers and small businesses. For a graphical representation of monopoly profits, click here.