Creditors and other debt collection agencies are notorious for overstepping boundaries in pursuit of debt they believe they are owed. Unfortunately, in doing so, they frequently cause a great deal of undue hardship on individuals who may not even owe any debt, to begin with. That said, fortunately, legal recourse is available to those who have had their rights violated by debt collectors, and with a competent New York City debt collection harassment lawyer in your corner, you may be able to seek it. One of the ways in which those who have had their rights violated may receive compensation is through the Consumer Financial Protection Bureau relief fund. However, you should first understand who qualifies–and who does not qualify–for compensation through this fund. Read on and reach out to Rahman Legal today to learn more about how the CFPB fund works, who qualifies for compensation, and how our firm can help you get that compensation.
How does the CFPB determine who may receive compensation through their relief fund?
In our previous blog, we discussed the purpose of the CFPB relief fund, but to quickly recap, when consumers are wronged by debt collection agencies or creditors due to unfair debt collection practices, they may be eligible to receive compensation through a civil penalty fund set up by the Consumer Financial Protection Bureau. For example, recently, the law firm Forster & Garbus was ordered to pay $100,000 to the fund after being found guilty of unfair debt collection practices. The money in this fund will at least partially compensate victims of these unfair debt collection practices.
That said, the CFPB has strict criteria by which it determines who exactly is eligible to receive compensation through this fund. To be eligible, you must:
- Prove that a final order in a Bureau enforcement action imposed a civil penalty for the violation or violations that harmed you.
- Prove that the harm you have suffered was a direct result of a violation for which penalties were imposed.
You should also note that you will only receive compensation that the Bureau believes to be potentially practicable to calculate and that you will only receive compensation for losses that you have not yet been compensated for. It is also worth noting that once it is determined you are eligible, you will be placed into a class by the Fund Administrator, meaning you will be placed in a group of individuals who have suffered the same or similar violations. The Fund Administrator will then designate a payments administrator to distribute the allocated funds to individual victims within each class to the extent practicable.
If you have any further questions or believe your rights have been violated by a debt collector, please do not hesitate to contact Rahman Legal today.