15 U.S.C. § 1692k: Civil liability

Summary

If a debt collector breaks the rules, the person harmed can sue and get money. The court can order the collector to pay any real losses plus extra damages. In an individual case, extra damages can be up to $1,000. In a class action, each named plaintiff can get up to $1,000, and the court may award money for other class members up to the lesser of $500,000 or 1 percent of the collector’s net worth. A winning plaintiff can also recover court costs and a reasonable lawyer’s fee. If the court finds the suit was brought in bad faith to harass, the collector can get its lawyer’s fees. When deciding the amount, the court looks at how often and how serious the violations were and whether they were intentional. For class cases the court also considers the collector’s resources and how many people were harmed. A collector is not liable if it proves, more likely than not, that the violation was a genuine mistake despite having procedures to prevent it. Lawsuits must be filed within one year of the violation and can be brought in a proper federal or other court. Good-faith actions taken in line with an advisory opinion of the Bureau are protected even if that opinion is later changed or ruled invalid.

Title 15, §1692k

Commerce and Trade, Source: USLM XML via OLRC

(a)Amount of damages

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)

(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)Factors considered by court

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)Intent

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)Jurisdiction

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)Advisory opinions of Bureau

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