Due to a weak economy and sour job market, many in Texas and elsewhere have experienced severe financial hardship. Too often, many people find themselves underwater on their mortgage or suffering under the weight of insurmountable debt. However, Texas residents may be interested to know about one woman seeking to turn the tables on credit card debtcollection companies.
On Sept. 26, the woman filed a lawsuit in U.S. District Court for the Eastern District of Texas against a Pennsylvania law firm acting as a collection agency. The law firm began demanding payment for the woman's credit card debt in Dec. 2010. The firm reportedly provided names of different collection companies when calling the woman. Those companies in turn were said to call her vulgar names and threatened to file a lawsuit.
The actions by the collection companies may violate federal law. The Fair Debt Collection Practices Act prohibits conduct that is abusive and harassing, such as using profane language. Also, threatening to file a lawsuit with no intention of actually doing so is a violation of the act. Here, the alleged credit card debt was time-barred, meaning that the companies could not resort to court action in order to collect. The woman is seeking statutory damages, in addition to court costs and attorney's fees.
Those suffering from financial hardship may empathize with the woman. Credit card debt collection companies can be extremely persistent, calling multiple times a day, with even resorting to abusive and illegal behavior. Texas residents caught in such a situation may benefit from consulting with an experienced attorney, who may be able to help ensure that the debtor's rights are not violated.
Source: The Southeast Texas Record