Phone Call Us 414-326-9231
Toll Free 866-678-9352
Text Us 414-277-7742

Court affords consumers more rights in debt collection case

The U.S. 6th Circuit Court of Appeals recently decided a case that could afford consumers more rights in debt collection cases under the Fair Debt Collection Practices Act (FDCPA).

The FDCPA is a set of laws that provides consumers with protections from abusive debt collection practices. One portion of the FDCPA requires debt collectors to verify the legitimacy of a debt before the consumer is required to pay it.

For years, the “verification” standard was quite low. In a 1999 decision by 4th Circuit Court of Appeals, the court ruled that verifying a debt under the FDCPA “involves nothing more than the debt collector confirming in writing that the amount being demanded is what the creditor is claiming is owed.”

Essentially, that meant the debt collector just had to believe that the debt was real based on the original creditor’s word and then put it into writing. No other proof was needed.

However, last month the 6th Circuit Court of Appeals ruled that debt collectors must provide a more substantial “verification” of the debt that is supposedly owed.

“The verification provision must be interpreted to provide the consumer with notice of how and when the debt was originally incurred or other sufficient notice from which the consumer could sufficiently dispute the payment obligation,” the court held.

What this means is that debt collectors could stand to make a lot less money by purchasing outstanding debts for mere pennies on the dollar, and consumers have more ammunition when fighting off debt collectors.

Although the state of Wisconsin does not fall under the 6th Circuit Court’s jurisdiction, the case may still influence decisions made here.

For more information about your rights when facing debt collectors talk to an experienced bankruptcy lawyer in your area.

Source: Consumer Affairs, “Court gives consumers stronger protection from debt collectors,” Mark Huffman, Aug. 4, 2014

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

Milwaukee Office
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Law Office Map

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Map & Directions