If a debt collector has ever harassed you, sent you misleading letters, or tried to collect money you don’t owe, you might have wondered whether you could do something about it. Most people assume that if the individual harm is small, there’s not much point in pursuing legal action. An attorney would cost more than the violation is worth. The case wouldn’t go anywhere.
That thinking is understandable, but it misses an important piece of the picture. Debt collectors don’t just break the rules once. When a collection company sends an illegal letter, they typically send that same letter to thousands of people. When a debt buyer makes a misleading claim in a lawsuit, they’re probably making the same claim in hundreds of other cases filed that same month. The violation is systematic, not isolated. And that’s exactly the situation class action lawsuits were designed for.
It is a pattern that George Pliakos of Boevingloh & Pliakos has seen repeatedly over more than 20 years handling these cases in Missouri courts. The same illegal practices get applied to thousands of consumers at once, and most of those consumers never know their rights were violated because no individual harm was large enough to make it obvious.
What Is a Class Action Lawsuit?
A class action is a type of lawsuit where one person, or a small group of people, files a case on behalf of a much larger group that was harmed in the same way. The people named in the lawsuit are called class representatives. Everyone else who experienced the same violation makes up the class.
Before a class action can proceed, the court has to formally certify it. The judge reviews whether there are enough people with similar claims, whether the legal questions common to the group outweigh the individual differences, and whether the class representatives and their attorneys can adequately represent everyone. Certification is a critical step, and not every case qualifies.
Once a class is underway, people who fall into it typically receive notice and are given the option to participate or opt out. If the case settles or results in a judgment, the recovery is distributed among class members. The attorneys representing the class generally advance all costs and are paid from the recovery if the case succeeds. Class members typically pay nothing out of pocket.
Why Are Debt Collection Cases Well Suited for Class Actions?
Debt collection is one of the most active areas of class action litigation in the country. The industry operates at enormous scale. Debt buyers purchase portfolios of thousands of accounts at a time. Collection law firms file hundreds of lawsuits a month. Communication with consumers is largely automated, with form letters going out in bulk and the same call scripts used for every account.
When a violation occurs in that environment, it rarely affects just one person. A misleading letter that went to one consumer almost certainly went to every consumer in that portfolio. A lawsuit filed on a time-barred debt by one law firm was probably filed on dozens of other time-barred accounts the same week. The violation is built into the process, which is why the Fair Debt Collection Practices Act includes specific provisions for class action claims. Congress recognized that the most effective way to stop systematic illegal conduct was to give consumers a mechanism for collective action.
What Types of Violations Lead to a Class Action?
Not every bad experience with a debt collector qualifies. The key is whether the conduct was systematic, meaning it was applied consistently to a group of people rather than being an isolated mistake. Here are the most common types of violations worth evaluating.
Misleading or False Collection Letters
The FDCPA prohibits collectors from using false, deceptive, or misleading statements when collecting a debt. Letters that misrepresent the legal status of a debt, overstate the amount owed, imply urgency that doesn’t exist, or suggest legal action is imminent when it isn’t are among the most frequent bases for class claims. In one case handled by the firm, a Missouri consumer came to Boevingloh & Pliakos after receiving collection letters from a debt buyer that misrepresented the status of the debt and implied consequences that were not legally available. When George reviewed the situation, it became clear those same letters had gone to every consumer in that purchased portfolio. What started as one person’s experience became a case with class action potential affecting hundreds of Missouri consumers.
Attempting to Collect Time-Barred Debts
Debt buyers frequently purchase old accounts and pursue them without checking whether the statute of limitations has expired. In Missouri, the statute of limitations on most consumer debt is five years from the last payment. Filing a lawsuit or threatening legal action on a debt that is past that limit can be an FDCPA violation. When a debt buyer pursues an entire portfolio of old accounts without proper screening, the result can be a large class of consumers who received illegal collection attempts.
Collecting Unauthorized Fees or Interest
Debt collectors cannot collect amounts not authorized by the original agreement or permitted by law. When buyers pursue inflated amounts across an entire portfolio, that systematic overcharging can support a class action claim.
Improper or Harassing Communication Practices
Automated calling systems, repeated contact after a consumer has asked it to stop, and contacting consumers at prohibited times are all violations that tend to be applied uniformly across accounts. When those practices are built into a collector’s procedures rather than being isolated incidents, a class action becomes a realistic option.
Schedule your Free Consultation.
Talk to an attorney today.
What Can Class Members Recover?
In an individual FDCPA case, a consumer can recover actual damages plus statutory damages of up to $1,000. In a class action, total statutory damages are capped at the lesser of $500,000 or one percent of the debt collector’s net worth, divided among all class members. Actual damages are separate and can be recovered in addition.
The FDCPA also requires the defendant to pay attorney fees and court costs if the plaintiff prevails. This fee-shifting provision is what makes these cases financially viable for consumers. The attorneys advance the costs and recover their fees from the defendant if the case succeeds. It’s worth being realistic about individual recoveries. In large classes, the per person statutory amount can be modest. But class actions also force companies to change their practices, which protects future consumers from the same harm.
How Does a Debt Collection Class Action Actually Get Started?
It starts with one person. That person comes to an attorney with a story about something a collector did that seems wrong. The attorney, in this case George Pliakos, reviews the situation and investigates whether the same conduct was applied to others. If the facts suggest a systematic violation, a lawsuit is filed naming that individual as the class representative and alleging claims on behalf of all others similarly situated.
From there, the plaintiff’s attorney files a motion for class certification. The defendant will oppose that motion, and there can be significant legal work at that stage. Cases with clearly systematic violations and large numbers of affected consumers tend to be stronger certification candidates. Most class actions eventually settle before trial, typically resulting in a fund distributed to class members and sometimes a change in the defendant’s practices going forward. All settlements require court approval, which provides an additional layer of protection for class members.
What If the Debt Collector Has Already Sued You?
Being sued by a debt collector doesn’t disqualify you from raising FDCPA claims. FDCPA counterclaims can be filed within an existing collection lawsuit. If the collector or their attorneys violated the FDCPA in the process of pursuing the case against you, those claims can be raised right in the same proceeding. In the case described earlier, the firm handled both the collection lawsuit defense and the FDCPA evaluation simultaneously. The debt buyer, facing both a contested collection case and potential FDCPA liability, had strong incentive to dismiss the collection case entirely. At Boevingloh & Pliakos, every collection lawsuit is evaluated for potential FDCPA violations, because they are more common than most people realize.
How Do You Know If You Might Have a Class Action Case?
You often don’t know until an attorney reviews what happened. Pay attention to the details. Did you receive letters that seemed misleading or made threats that never materialized? Did a collector call repeatedly after you asked them to stop? Did you receive a lawsuit on a debt that seemed very old? Were fees or amounts added that you didn’t recognize from your original account? Any of those situations is worth a conversation. Your individual experience may also be the starting point for a case that benefits many other Missouri consumers who received the same treatment.
One important timing note. The FDCPA has a one year statute of limitations. If the violation occurred more than a year ago, your claim may already be time-barred. If something happened recently, acting sooner rather than later preserves your options.
Thinking About Your Options?
If a debt collector has treated you in a way that felt wrong or illegal, a free consultation is the right first step. At Boevingloh & Pliakos, George Pliakos and Kris Boevingloh have been representing Missouri consumers in these cases for over 20 years and know exactly how these companies operate.
To learn more about how we handle these cases, visit our class action practice page.
If you’ve also been sued directly, our consumer debt defense services page explains how we fight collection lawsuits.
For a broader overview of how we protect Missouri consumers, visit our debt defense practice overview. You can reach us at 314.989.1492 or toll free at 1.800.989.1492 for a free phone consultation.
The choice of a lawyer is an important decision and should not be based solely upon advertisements.
