Debt Collector To Pay $854,389.00 In Damages
The Fair Debt Collection Practices Act (FDCPA) is a federal statute which protects consumers from unscrupulous debt collectors. Despite that the FDCPA has been around for a long time, debt collectors violate the statute routinely. For violations, the FDCPA mandates statutory damages in the amount of $1,000.00 and actual damages, if any, and attorney's fees and costs. Recently, a Judge in Jackson County, Missouri ordered a debt collector named Merchant's Retail Credit Association (MRCA) to pay $854,389.00 in damages to Gilbert Maddux, Dolores Maddux and Jenni Maddux.
Before we go into the details of the case it is important to note that the Judge did a wonderful job of outlining the violations committed by MCRA and the history of the debt in the 35 page judgment. The debt was first incurred by Dolores Maddux in 2001 when she borrowed money from Citifinancial. Citifinancial later sold the debt to a debt collector known as Nationwide Credit Service. Nationwide Credit Service sold the account to MCRA in 2004.
The violations ranged from the usual name calling, harassing phone calls at work and home, threats and the ignoring of warnings from the Maddux's counsel. The violations later became more extreme. Dolores Maddux was called lazy, pathetic, stupid, fat and inbred. This is usually true of how these debt collectors operate against women. They attempt to destroy the individuals self esteem. With men, like Mr. Maddux, they use a different tactic. Mr. Maddux was threatened with bodily harm. He was told that the collector was going to bring four guys to take care of the situation. It reminds you of the O.J. Simpson case in the Las Vegas hotel room. As usual, the threats and name calling escalated. Interestingly, MCRA also obtained the Maddux's credit reports without their authorization.
When all was said and done, th Judge awarded the family $620,087.00 in actual and statutory damages. Likewise, the Judge ordered MCRA to pay attorney's fees in the amount of $234,302.00. This is a great example of Justice being served. To learn more about these types of cases visit: www.bankruptcylawnetwork.com
