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Epic Contributor
Posts: 25,652
Registered: ‎03-19-2007
Re: SOL on Payday Loans in TX
[ Edited ]

It is a violation of FDCPA 807(5) for a debt collector to make threat of legal action that either cannot legally be taken, or that they have no actual intent to take.  Lack of actual intent is hard to show, but in cases such as the one posted, might be supportable.


In the scenario posted, there appears to be enough evidence of threat without any reasonable intent to actually bring the threatened action.  Repeated threats followed by no filing of legal action equates, at least to me, as evidence of lack of actual intent.


I would file a formal complaint with the FTC for violation of FDCPA 807(5).  The debt collector must answer any resulting FTC inquiry to them, explaining their action.

The FTC can bring sanctions or legal action if they find violation.  As a practical matter, the FTC does not bring legal action on individual consumer complaints, but at the very least, the debt collector will be required to explain their actions to the FTC, and will be recorded in their files.  Repeated consumer complaints for similar violation might spur the FTC to take legal action, either by way of sanction or suit.