SETTLING DEBTS – Penalties Available for Debt Collection Violations in California
Dealing with debt is stressful enough, but when debt collectors cross the line, they can violate your rights under state and federal laws.
California provides robust protections for consumers, and if you’ve been harassed or treated unfairly by a debt collection company, you could be entitled to compensation.
Common Debt Collection Violations
Debt collectors must adhere to specific rules when attempting to collect debts. The Fair Debt Collection Practices Act (FDCPA) and California’s Rosenthal Fair Debt Collection Practices Act (RFDCPA) protect consumers from abusive practices. Here are some common violations that consumers face:
Harassment: Repeated phone calls, threats of violence, or using abusive language are all prohibited under both federal and state laws.
Misrepresentation: Debt collectors cannot misrepresent the amount owed, falsely claim to be attorneys, or threaten legal action that they cannot take.
Unauthorized Contact: Debt collectors are prohibited from contacting you at inconvenient times (like before 8 a.m. or after 9 p.m.) or at your place of work without permission.
Failure to Provide Verification: If you dispute the debt, the collection agency must provide verification of the debt. Failing to do so is a violation of your rights.
Threatening Arrest: Debt collectors cannot threaten you with arrest or claim you’ve committed a crime because you owe money.
These violations are more than just inconveniences—they can cause emotional distress and even damage your credit. If any of these tactics sound familiar, you may have a case against the debt collection agency.
Notable Debt Collection Companies and Their CFPB Complaint Rankings
Many debt collection companies have garnered a significant number of complaints from consumers. The Consumer Financial Protection Bureau (CFPB) maintains a Real-Time Debt Collection Complaint Database that ranks these companies based on complaints. Below are some of the most frequently cited debt collection companies, along with the types of complaints they face:
Encore Capital Group
Based in San Diego, Encore Capital Group is one of the largest debt buyers in the U.S. According to the CFPB database, Encore frequently faces complaints related to harassment and inaccurate information on credit reports. Consumers report that Encore attempts to collect on debts that have already been paid or that they do not owe.
Midland Credit Management (MCM)
A subsidiary of Encore Capital, Midland Credit Management consistently ranks high on the CFPB’s complaint database. Consumers report that Midland attempts to collect debts that are beyond the statute of limitations and often refuses to provide proper documentation when debts are disputed.
Portfolio Recovery Associates (PRA Group)
Portfolio Recovery Associates, based in Virginia, is another major player in the debt collection industry. The CFPB database shows numerous complaints about unauthorized contact and aggressive legal threats. PRA Group has faced backlash for pursuing old debts and filing lawsuits against consumers.
Wakefield and Associates
Wakefield and Associates is a third-party debt collection agency based in Aurora, Colorado, with additional offices in locations such as Fort Morgan, CO, Knoxville, TN, and more. They are particularly known for collecting medical-related debts but also work in other industries like education and property management. They have faced numerous consumer complaints, primarily for harassment, inaccurate reporting, and failure to validate debts, and rank at #112 out of 2,458 companies on the CFPB’s Debt Collection Complaint Database. Many complaints revolve around their attempts to collect on debts that are either incorrectly reported or not properly validated. which can result in unnecessary damage to credit scores
LVNV Funding, LLC
LVNV Funding, a major debt buyer, has been frequently cited for attempting to collect on old or invalid debts. Many consumers report that LVNV continues to pursue collections without verifying the legitimacy of the debts, especially for debts that have exceeded the statute of limitations.
Synchrony Financial
Synchrony Financial, a debt buyer and issuer of store-branded credit cards, has numerous complaints about misleading collection practices and unauthorized charges. Consumers report difficulty disputing debts, and the company’s aggressive tactics often violate federal consumer protection laws.
Cavalry Portfolio Services
Based in New York, Cavalry Portfolio Services frequently receives complaints for attempting to collect on old debts. Consumers report harassment and aggressive legal threats, often involving debts that are no longer valid.
Convergent Outsourcing
Headquartered in Renton, Washington, Convergent Outsourcing has faced numerous complaints about harassment and misrepresentation. Many consumers report that Convergent continues to contact them after debts have been resolved or settled.
Transworld Systems Inc. (TSI)
Based in Pennsylvania, Transworld Systems consistently ranks high on the CFPB database. Complaints include failure to provide proper debt validation and threatening legal action without merit. Transworld has faced several lawsuits for violations of consumer protection laws.
Credit Control, LLC
Based in Hazelwood, Missouri, Credit Control has been the subject of numerous complaints for harassment and failing to verify debts. Consumers report that Credit Control continues to pursue collections even after written disputes are filed, causing unnecessary stress and credit damage.
Afni, Inc.
Afni, located in Bloomington, Illinois, is frequently mentioned in the CFPB database. Consumers report issues with harassment and persistent calls, even after the debts have been settled. Afni has also been criticized for not updating credit reports after debts have been paid off, leading to long-term credit score issues.
Receivables Performance Management, LLC
Receivables Performance Management has been the subject of numerous complaints related to harassment and contacting consumers at inappropriate hours. The company also faces complaints about failing to provide proper documentation for debts when disputes are filed.
Stellar Recovery, Inc.
This company has been cited for aggressive collection tactics, including threats of lawsuits and wage garnishment. Consumers have reported being contacted about debts that were already paid off or settled, with no proper resolution provided.
Performant Recovery, Inc.
Performant Recovery frequently appears in the CFPB database for inaccurate debt reporting and continued attempts to collect on disputed debts. Consumers report difficulties in resolving disputes in a timely manner.
Dynamic Recovery Solutions, LLC
Consumers report harassment and misrepresentation from Dynamic Recovery Solutions. Complaints often involve the company’s continued attempts to collect on invalid or non-existent debts, without providing the required documentation.
NCO Financial Systems
NCO Financial Systems ranks high in the CFPB database for harassment and unauthorized charges. Consumers report frequent issues with NCO attempting to collect on settled debts or debts beyond the statute of limitations.
Receivables Performance Management, LLC
Receivables Performance Management has been subject to numerous complaints for harassment and contacting consumers outside of legal hours. Issues such as repeated calls and failure to provide proper validation of the debt are common complaints seen on the CFPB platform.
IC System, Inc.
Based in St. Paul, Minnesota, IC System has been the subject of numerous consumer complaints, primarily for misrepresentation and harassment. Consumers report that IC System often tries to collect debts without providing the required validation, leading to disputes and further violations of consumer rights.
Allied Interstate
Allied Interstate, headquartered in Minnesota, consistently ranks high in the CFPB complaint database. Common issues include repeated harassment calls and attempts to collect debts that have already been settled. Many consumers have accused Allied Interstate of failing to verify the debts they are attempting to collect.
Resurgent Capital Services
Based in Greenville, South Carolina, Resurgent Capital Services ranks in the top tiers of CFPB complaints for issues like unauthorized contact, inaccurate reporting, and failure to properly validate debts. Many consumers report that Resurgent continues to collect on debts even after they have been disputed or are outside the statute of limitations.
Statutory Penalties and Financial Compensation for Debt Collection Violations
Consumers are protected by both federal and state laws when it comes to debt collection practices. If your rights have been violated, you may be entitled to financial compensation:
FDCPA Violations: The FDCPA allows you to recover up to $1,000 in statutory damages per violation, as well as any actual damages for harm caused, such as lost wages or emotional distress. You may also be entitled to attorney fees and court costs.
Rosenthal Act Violations: Under California’s Rosenthal Fair Debt Collection Practices Act, consumers can recover actual damages for harm caused by a debt collector’s misconduct. You may also receive up to $1,000 in statutory damages and potentially attorney fees and court costs.
These penalties provide powerful protection for consumers and ensure that debt collectors are held accountable for their actions.
How Consumers Can Help Themselves Against Debt Collection Violations
In addition to relying on legal protections, there are steps you can take to safeguard your rights:
Keep a Written Record of All Communications: Document every phone call or interaction with debt collectors, including the date, time, and content of the conversation. This can serve as critical evidence if you need to prove harassment or other violations.
Save All Written Correspondence: Keep copies of every letter or email you receive from debt collectors. Scan and store these digitally to ensure you have a complete record of all communications.
Document Collection Efforts: Track the methods and frequency of collection attempts, such as phone calls, emails, or letters. Excessive contact can be considered harassment, and your documentation will support your claim.
Contact a Debt Collection Lawyer if You Are Served with a Lawsuit: If you receive notice of a lawsuit from a debt collection agency, contact a lawyer immediately. Ignoring a lawsuit can result in a default judgment, which could allow the creditor to garnish your wages or freeze your bank accounts.
By staying proactive and maintaining thorough records, you’ll be in a stronger position to dispute debt collection violations and protect your rights.
What To Do if Your Rights Were Violated
If you believe a debt collection company has violated your rights, you may be entitled to compensation.
R23 Law’s California Debt Collection Violation Lawyers specialize in protecting consumers from illegal debt collection practices.
Our experienced team will guide you through disputing the debt and, if necessary, filing a lawsuit to hold the debt collectors accountable.
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Contact R23 Law’s California Debt Collection Violation Lawyers today for a free consultation.
We offer services in multiple languages, including several Asian languages, to ensure that you receive the help you need. Don’t let a debt collector’s illegal practices harm your financial future—reach out to R23 Law and protect your rights.
