Home » Personal Finance Articles » Debt Shield Applauds Supreme Court Ruling
Debt Shield Applauds Supreme Court Ruling
Award-winning debt settlement company supports recent court ruling that protects a consumer's right to sue collectors who violate the FDCPA (Fair Debt Collection Practices Act).
COLUMBIA, MD, May 21, 2010 /Personal Finance PR News/ -- Executives at Debt Shield, a Maryland-based debt settlement company, are applauding a recent Supreme Court decision that makes it easier for consumers to sue collectors for FDCPA violations.
The court ruled that debt collectors cannot use ignorance of the law as an excuse for breaking it.
"This ruling is a victory for consumers," said Debt Shield CEO Phil Fewster. "Victims of FDCPA violations should have the right to sue debt collectors who engage in violations as serious as harassment or as insidious as technical violations concerning notifications and debt validation."
The Supreme Court decision came after a homeowner filed a lawsuit against an Ohio law firm that began foreclosure proceedings based on a nonexistent debt. The law firm stated the alleged debt would be assumed valid unless the homeowner contested in writing, a violation of section 1692g (a) of the FDCPA. The law firm claimed that the violation was unintentional and therefore a bona fide legal error. The court ruled 7-2 in favor of the homeowner.
Fewster warned that, without this ruling, collectors could potentially violate consumer protection laws on a regular basis and then claim ignorance when they are charged.
The FDCPA, or Fair Debt Collection Practices Act, was enacted to protect consumers from overly aggressive or deceptive collection tactics. In 2009, there were 8,287 consumer lawsuits filed against debt collectors alleging FDCPA violations, according to WebRecon, which tracks collection-related litigation for debt collectors. That number is up from 5,188 in 2008 and 3,813 in 2007.
Fewster explained that the increase in consumer lawsuits is likely due to the ongoing recession making it difficult for collectors to recover anything from unemployed or insolvent consumers. Some desperate collectors turn to aggressive tactics which violate the FDCPA and lead to consumer lawsuits. Growing consumer awareness regarding consumer protections may also be factor.
"This ruling reiterates how important it is for all consumers, and especially debtors, to understand that there are consumer protections in place and they can file suit against collectors who — knowingly or unknowingly — violate their rights," said Fewster.
Learn more about the FDCPA here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
Debt Shield, Inc., is a debt settlement company dedicated to helping consumers resolve their unsecured debt through mutually agreeable and discounted lump sum settlements in consideration of legitimate financial hardships. By helping consumers avoid bankruptcy, Debt Shield provides a service for both debtors and creditors. For more information about Debt Shield, call 1-888-397-7546 or visit the website at www.debtshield.com.
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Press Release Contact Information:
Maggie Beetz
Debt Shield, Inc.
Director of Communications
9212 Berger Rd.
Columbia, Maryland
USA 21046
Voice: 1-888-397-7546
Website: Visit Our Website |
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