
Common Consumer Violations
Creditors break the law frequently. Sometimes on purpose, sometimes inadvertently. Regardless of the reason, if a creditor has violated consumer protection law, you may have the right to offset the creditor’s claim and possibly sue for damages. See below for common consumer protection violations.
Common Consumer Protection Violations
We litigate against creditors under a variety of statutes. Here is a brief overview of potential areas and common violations. We litigate other consumer protection statutes as well, call us if you have questions or would like a free phone consultation. 206-535-2559.
- Debt Consolidation Violations (RCW 18.28)
- Fair Debt Collection Practices Act Violations (FDCPA)
- Medical Debt & Charity Care Violations (Washington Specific)
- Military & SCRA Violations
- Time Share Violations
- Washington Collection Agency Act Violations (RCW 19.16)
- Washington Consumer Protection Act Violations (RCW 19.86)
Remember, if there is a potential consumer violation there must be admissible evidence. So if you receive a letter that says they are calling the cops on you and demanding more than is owed, that is good evidence. If you get a phone call from a heavy breather making racial slurs, you likely need to have a recording and have it on audio that they consented to being recorded. If they leave a voice mail, you are good.
Debt Consolidation Violations (RCW 18.28)
This statute governs debt consolidation companies (like National Debt Relief). In general, we find that most consolidation companies achieve modest results in exchange for usually around a $50.00 a month fee with services lasting several years. They do not stop negative credit reporting or law suits and refer you out for either service. In any case, common violations by these companies include the following:
- Charging more than 15% of the face value of the debt (RCW 18.28.080)
- Charging more than $25.00 file set up or case closing fee (RCW 18.28.080)
- Contract does not list all essential terms and notices, see statute for specifics (RCW 18.28.100)
- Duty violations, including not giving a monthly statement (RCW 18.28.110)
- Taking prohibited actions to include collateral, offer gifts, etc. (RCW 18.28.120)
- Using an attorney in their process and giving legal advice but are not a law firm (RCW 18.28.130)
- Violations of the Credit Repair Organizations Act (CROA) to include taking fees in advance
Fair Debt Collection Practices Act Violations (FDCPA)
The FDCPA does not apply to original creditors but does apply to debt buyers, collection agencies, and attorneys whose primary purpose is the collection of debts. It also only applies to consumer debts, not business debts, debts owed to the government, or family law related debts. It is a very broad statute and it would take up a large portion of this page to display all of the potential violations. In general, you will need evidence of the violation (so if they say something nasty to you on the phone, you will likely need a recording or reliable witness). In broad strokes, common violations include:
- Collecting zombie debt (time barred or discharged in bankruptcy)
- Disclosing the debt to third parties (employer, neighbors, etc.)
- Falsely representing that they are (or might be) a government agency or a law firm (if they are not)
- Failure to send required notices (30 day dunning letter is most common)
- Misrepresentation of facts or law
- Threatening you with arrest, jail, or other criminal prosecution
- Threatening you with other illegal actions or actions they cannot or do not intend to take
Medical Debt & Charity Care Violations (Washington Specific)
The usual issues with medical debt include the below. Keep in mind charity care only applies to public hospitals and facilities, not private clinics.
- Balance Billing- which is billing the difference between an out of network provider bill and what your insurer paid. See house bill 1065 (2019) and amendments to RCW 18.130, 41.05, 43.371, 48.8, 48.18, 48.43, 70.41, 70.42, and 70.230
- Failure to properly bill insurance which is a defense (offset, failure to mitigate damages, negligence) and potentially a violation of RCW 19.86
- Failure to consider you for charity care which can be a violation of RCW 19.86, RCW 70.170.060, and WAC 246-453. Charity care only applies to public hospitals. See RCW 70.170.060 and WAC 246-453.
- Overbilling which is a violation of RCW 19.16 and RCW 19.86 and the FDCPA
Time Share Violations
See our Time Share page for a full list of common violations
Washington Collection Agency Act Violations (RCW 19.16)
Similar to the FDCPA, and passed as a sister statute, this only applies to debt collectors and debt buyers, not original creditors. Unlike the FDCPA, this applies to any agreement (meaning consumer or business debt) but not to a non-agreement (criminal fines, taxes, family law related matters, etc.). It is open ended if an agreed settlement in a family law matter could apply and has not been litigated….yet.
- There are twenty six potential violations, which would take up most of this page, instead see this link to RCW 19.16.250 and the below summary
- Demanding more than is legally due
- False or misleading statements, threat that they cannot or do not intend to take
- Impersonating (or implying they are) a government agency, police, or as an attorney when they are not
Other Statutes we Litigate Under