What happens when Creditors "overstep" boundaries in collecting Debts?
When a creditor "oversteps" boundaries in collecting a debt, what is the debtor's potential for recovery?
Florida statute 559.77 provides that if a plaintiff can show a creditor's harassment or abuse was wanton, malicious or gross and outrageous, then punitive damages may be available. "Punitive damages" are damages that seek to punish the defendant for misconduct and, in theory, deter others from engaging in similar conduct. If the creditor's conduct is not malicious or willful, then damages will probably be minimal unless you can prove actual damages. Some Florida courts have inserted "liquidated damages" where actual damages were too difficult to determine or non-existent. These types of damages are small, and unless established by contract, must be litigated upon.
Attorney's fees are normally awarded to the prevailing party in these types of actions, but are still left to the discretion of the court. Courts that have jurisidiction over these types of claims are (1) the county where the defendant resides or has its principal place of business or (2) the county where the harassment occurred.
Applicable federal laws can be found at Fair Debt Collections Act, and Florida laws can be found at Florida Consumer Collection Practices Act.
If you have further questions about creditor rights, contact Wood, Atter & Wolf, P.A. for legal counsel
