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Debt Collectors and Fair Practices
recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney’s fees also can be recovered. A group of people may also sue a debt collector and recover money for damages up to $500,000, or 1% of the collector’s net worth, whichever is less.
Where can you report a debt collector for an alleged violation?
Report any problems you have with a debt collector to your state Attorney General’s office and the Federal Trade Commission.
Visit www.ftc.gov or call toll-free:
1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.
Many states have their own debt collection laws, and your Attorney General’s office can help you determine your rights.
LET’S REVIEW ________________________________
Secured or Unsecured?
To help you understand the difference between secured debt and unse- cured debt, we have created the following simple exercise. In the space provided, write an “S” if you think the debt is a secured debt, and a “U” if you think the debt is unsecured. Remember, secured debt is debt backed by collateral or property. Unsecured debt is not backed or guaranteed by any collateral.
