Taking legal action against a debt collector

Category: Debt Settlement


Even if you are in a lot of debt, you still have rights when it comes to how a debt collector should contact you. If you believe a debt collector is harassing you, you may be eligible to take legal action.

If a debt collector has violated any regulations, you have the right to press charges in a federal or state court within one year from the incident. If your lawsuit is successful, the judge may order the debt collector to pay you any damages that you may have suffered as a result of the harassment, such as medical expenses or lost wages. Even without concrete evidence, the judge may order that the collector pay you up to $1,000, in addition to reimbursement for court and lawyer fees.

A group of individuals may be eligible to press charges against a debt collector as part of a class action case and recover compensation equal to one percent of the debt collector’s net worth, or up to $500,000, whichever amount is less.

If you are experiencing any issues with a debt collector, the FTC encourages consumers to report all incidents. You may also need to report to your state Attorney General’s office, as many states have their own debt collection regulations set in place, which differ from federal laws. As such, your Attorney General’s office can help you figure out what rights you have, based on the laws in your state.

Although taking legal action against a debt collector may put an end to the harassment and result in justice on your behalf, the debt does not go away; you are still obligated to pay that money back.

If you need  cash to pay off debt and you’re the recipient of a life contingent annuity payment stream, Peachtree Financial Solutions can help. We can purchase some or all of the payments that are part of your life contingent annuity payment stream. In exchange, we provide you with that money upfront, in the form of a lump sum. With that money, you can put that debt behind you, helping you to get a fresh financial start. For more information on how we can help get you cash now for your structured settlement payments, contact Peachtree Financial Solutions today.

Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services. 

Tags: debt, debt collectors

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