Steps to File a Lawsuit Against the Collection Agency

Some debt collectors use underhanded tactics to collect money. They are governed by the Federal Trade Commission, and state laws enforced by the attorneys general office. If a creditor violates this act, you can file a complaint or even sue for damages. You have up to a year to file a lawsuit. The Federal Trade Commission does not resolve individual cases, so you should sue a collection agency in your state or federal court.

Instructions

1. Know your rights. Use the Federal Debt Collection Practices Act to identify the ways in which the collection agency has violated your rights. According to the Federal Debt Collection Practices Act, a creditor is not allowed to harass you, call outside the hours of 8 A.M. and 9 P.M., or add on unauthorized charges. Contact your state attorney general's office to find out what your rights are.

2. Ask the company to stop. You have to make clear that you would like the behavior to stop to establish your case. Put your request in writing and send your letter by certified mail.

3. Document everything. Document the name of the caller and the agency, as well as the time and date of the call. Make sure to send all letters by certified mail. You can record phone calls between you and the collection agency, although in some states it is illegal to record phone calls without the other party knowing.

4. File a complaint. You can file a complaint with the state attorney general's office and with the Federal Trade Commission.

5. Visit the courthouse. You can get valuable information on whether to file in state or federal court. It depends on the laws broken, the location of the collection agency and the dollar amount of damages that you are requesting. A case filed in the incorrect court will be thrown out. You can also file in small claims court depending on the amount of the damages. You can start the paperwork while you are at the courthouse, or they will direct you to the right place.

Tips & Warnings

• In some states you can't sue a collection agency unless there have been monetary damages. Monetary damages include lost wages, or higher interest rates due to an erroneous claim.

• You may want to consult a lawyer to help assess whether you have a case, or where to file your claim.

• Just because you sue a collection agency doesn't mean that the debt goes away.

References

• What to do if a Bill Collector Crosses the Line?
• Federal Trade Commission Debt Collection FAQ's

Resources

• Should I file in state or federal court?