§1692k — Title 15 Commerce and Trade | U.S. Code

Summary

If a debt collector breaks the rules, the person harmed can sue and make the collector pay money. The collector must pay any actual losses the person suffered. In a case by one person, the court can also award extra damages up to $1,000. In a class action, each named plaintiff can get up to $1,000, and the rest of the class can share an amount that cannot be more than the smaller of $500,000 or 1% of the collector’s net worth. If the person wins, the court can also make the collector pay the legal costs and a reasonable lawyer’s fee. If the court finds the lawsuit was brought in bad faith to harass, it can make the plaintiff pay the defendant’s legal fees and costs. When deciding how much to award, the court will look at how often the collector broke the rules, how serious the violations were, and whether they were intentional. In class cases, the court also looks at the collector’s resources and how many people were harmed. A collector can avoid liability if they show, by enough evidence, that the mistake was not intentional, was a genuine error, and happened despite having reasonable procedures to prevent it. A lawsuit can be filed in federal court (no minimum amount is required) or another proper court, but it must start within one year of the violation. Acts done in good faith after following a Bureau advisory opinion are protected, even if that opinion is later changed or found wrong.

Title 15, §1692k

Commerce and Trade — Source: USLM XML via OLRC

(a)Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this subchapter with respect to any person is liable to such person in an amount equal to the sum of—

(1)any actual damage sustained by such person as a result of such failure;

(2)(A)in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $1,000; or

(B)in the case of a class action, (i) such amount for each named plaintiff as could be recovered under subparagraph (A), and (ii) such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of $500,000 or 1 per centum of the net worth of the debt collector; and

(3)in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney’s fee as determined by the court. On a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorney’s fees reasonable in relation to the work expended and costs.

(b)In determining the amount of liability in any action under subsection (a), the court shall consider, among other relevant factors—

(1)in any individual action under subsection (a)(2)(A), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or

(2)in any class action under subsection (a)(2)(B), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, the resources of the debt collector, the number of persons adversely affected, and the extent to which the debt collector’s noncompliance was intentional.

(c)A debt collector may not be held liable in any action brought under this subchapter if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.

(d)An action to enforce any liability created by this subchapter may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within one year from the date on which the violation occurs.

(e)No provision of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any advisory opinion of the Bureau, notwithstanding that after such act or omission has occurred, such opinion is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Subsec. (e). Pub. L. 111–203 substituted “Bureau” for “Commission”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

Effective Date

Section effective upon the expiration of six months after Sept. 20, 1977, see section 819 of Pub. L. 90–321, as added by Pub. L. 95–109, set out as a note under section 1692 of this title.

§1692k Civil liability

Summary

Title 15, §1692k

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata