Last week, a New Mexico jury awarded a consumer $1.26 million in a FDCPA suit in New Mexico. The jury awarded $161,000 in actual damages and whopping $1.1 million in punitive damages.
The case involved repeated attempts–including two wage garnishments–to collect a debt from a person that did not owe it. Although the plaintiff in the case had the same name as the actual debtor, she persistently told the debt collector that the debt did not belong to her. Even her employer got involved: when the debt collector served the garnishment papers, the employer told the debt collector that they were attempting to garnish the wrong person. And it turns out that they were. During the proceedings, it was revealed that the original creditor had provided the debt collector with the contact information for the correct debtor, but that the debt collector manually changed the contact information to that of the similarly-named non-debtor. And although the debt collector asserted that the mistake was a result of a bona fide error–which is a defense to a FDCPA claim–apparently, the jury did not buy their argument. And probably for a good reason. In my opinion, it’s difficult to argue bona fide error when you originally had the correct contact information, altered it to pursue the wrong person, and ignored that person’s (and her employer’s) repeated warnings that the collector had the wrong person.
Jury Awards Plaintiff $1.26 million in FDCPA Violation Lawsuit | InsideARM | July 31, 2011
If you’re dealing with debt collectors, make sure to download and use my free debt collection call log so that you can document all of the debt collectors’ communications. And if a debt collector does anything that you think was unfair; untrue; or harassing or abusive, please contact me to discuss the situation further. I offer a free case review for all FDCPA cases and if I agree to handle your case, you won’t have to pay me any money up front. My fees come from the money I recover from you if you win your case or accept a negotiated settlement.