The statute prohibits harassment, false or misleading representations, and unfair practices in collecting consumer debts. It applies to debt collectors rather than original creditors collecting their own debts.
Class damages are capped at the lesser of five hundred thousand dollars or one percent of net worth.
Alternative Names:
FDCPA|Debt Collection Practices Act
Why it Matters?
The class damages cap at one percent of net worth substantially limits aggregate exposure relative to other consumer statutes, which changes the settlement calculus and makes individual claims a larger proportion of total exposure. Debt collector status is the threshold defense, since original creditors collecting their own debts fall outside the statute entirely, and Henson confirmed that debt buyers collecting for themselves may as well.
Frequently Confused with
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Frequently asked questions
How is class exposure limited?
Who falls outside the statute?
