BLACK & LOBELLO FILES FEDERAL COMPLAINT AGAINST CASHCALL, INC. AND WS FUNDING, LLC FOR UNFAIR DEBT COLLECTION PRACTICES
Complaint against Cashcall, Inc. and WS Funding, LLC
On August 9, 2013, Black & LoBello filed a federal complaint alleging Cashcall, Inc. and WS Funding, LLC engaged in violations of the Fair Debt Collection Practices Act (“FDCPA”) and the Telephone Consumer Protection Act (“TCPA”). These lawsuits were filed on behalf of debtors against collection companies for unlawful and unfair debt collection practices. LaBella v. Cashcall, Inc, WS Funding, LLC, Case No. 2:13-cv-01427-MMD-VCF is currently pending in the United States District Court – District of Nevada.
The complaint filed against the cash loan giant alleges Cashcall (and its subsidiary, WS Funding) engaged in repeated harassing collection efforts, including threatening arrest if the debt was not paid and disclosing information concerning the alleged debt to third parties (family, friends and employer). As a result, the lawsuit seeks statutory damages, compensatory damages, attorneys’ fees and costs, and an injunction to prevent further illegal acts to collect the alleged debt.
What is the Fair Debt Collection Practices Act?
Congress enacted the FDCPA in 1977 to prohibit abusive, deceptive and unfair debt collection practices by third-party debt collectors. The FDCPA also seeks to promote consistent state action to protect consumers against debt collection abuses. Under the FDCPA, statutory damages are capped at a maximum of $1,000 per case. In addition to statutory damages, the claimant can recover actual damages and attorneys’ fees/costs. The FDCPA has a 1 year statute of limitations that runs from the date of the occurrence.
What is the Telephone Consumer Protection Act?
The TCPA prohibits the use of any auto-dialers and predictive dialers or an artificial or prerecorded voice to place calls to any wireless number except for emergency purposes or with the party’s express consent. The TCPA applies to any party engaged in prohibited use of auto-dialers and predictive dialers/prerecorded voices to place calls including debt collectors and telemarketers.
The victim of unauthorized calls may seek an action for injunction, recover actual monetary losses, or receive up to $500 in damages for each violation (whichever is greater). In addition, if the court finds that the defendant willfully or knowingly violated the TCPA, the court may, in its discretion, increase the amount of the award to an amount equal to not more than $1,500 per violation.
-Kevin Hernandez, Esq.
For more information relating to this post, please email the author at email@example.com.