Jeff's Blog

Consumer files an FDCPA lawsuit because of an old credit card debt and wins $311,000

A man who was twice sued over a $3,800 credit card debt, received a $311,000 judgment after a federal judge determined a North Dakota law firm violated debt collection laws.

It was quite simple actually.  A firm had filed a lawsuit against this consumer, on behalf of a Colorado collection company, CACV, seeking to collect on a $3,800 debt he owed Chase Manhattan Bank, along with about $6,000 in interest and attorney's fees.

Just two years earlier this man had a similar lawsuit, also filed on behalf of CACV, dismissed because the five-year statute of limitations had expired.

The case stemmed from a credit card debt owed Chase from the 1990s.

Unfortunately, this consumer was disabled in 1990 after being struck in the head with an iron bar. He eventually began receiving Social Security benefits, which are exempt from collections. Nevertheless, he that he worked with other credit card companies to pay his debts. He said Chase was the only company that would not work with him.

The debt was re-sold to a collection company. Two years after CACV's first lawsuit was dismissed, Johnson, Rodenburg and Lauinger again sued McCollough on behalf of CACV.

A jury awarded McCollough $250,000 for emotional distress, the statutory maximum of $1,000 for violating the Fair Debt Collection Practices Act and $60,000 in punitive damages, also the maximum allowed in the case. 

It seems as though it would be fair to say that consumers are getting tired of greedy debt collectors who do not follow the law.

Jeff Suher, Pittsburgh Consumer Attorney who specializes in the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. 

Jeff sues abusive debt collectors and helps consumers that have incorrect information on their credit reports.