Here in the United States, there are several laws in place that regulate how debt collection agencies can (and cannot) collect debt they believe they are owed. Unfortunately, it is not uncommon for creditors and debt collectors to violate these rules–and often, they do so on purpose. That said, if you believe you have been taken advantage of by unfair debt collection practices, you may have a path to legal recourse. One of the ways victims can collect compensation for unfair debt collection practices is through the Consumer Financial Protection Bureau relief fund. Read on and reach out to a competent New York consumer lawyer to learn more about the CFPB Civil Penalty Fund. Here are some of the questions you may have:
How does the CFPB relief fund work?
The CDPB relief fund was established through the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 with the purpose of providing victims of unfair debt collection practices a path to compensation. Essentially, the money held in the CFPB relief fund is pooled together and can be used to compensate qualifying victims who haven not been fully compensated for the damages they have incurred as a result of the defendant’s actions. Aside from providing victims with compensation, the Fund is also used to help pay for certain consumer education and financial literacy programs.
One recent instance of this Fund being used was in a successful lawsuit against the law firm Forster & Garbus. They were found guilty of running a debt lawsuit mill, which is, essentially the unlawful practice of churning out excessive amounts of frivolous lawsuits against individuals who they claim owe them debt (often without supporting documentation). As a result, one of the penalties they faced was having to pay a $100,000 penalty to the CFPB, which was then deposited into the CFPB’s victim relief fund.
Violations of the Fair Debt Collection Practices Act should never go unpunished and consumers should never have to face these entities on their own. If you are being harassed over a debt or have had a debt lawsuit filed against you, you need to act today. Our firm is here to help. Contact us today so we can get started working on your case.