What can happen if a debt collector has made a mistake?

If a debt collector has made a mistake in Maryland, they are subject to the Maryland Collection Agency Licensing Act. This act mandates that debt collectors must be licensed in Maryland and prohibits them from engaging in unfair or deceptive practices when collecting past due debts. In particular, this includes making false promises, misrepresenting the rights of the debtor, or making inaccurate statements about the debt itself. If a debt collector violates the Maryland Collection Agency Licensing Act, the debtor may take legal action against the collector. The debtor may be awarded damages and may be able to have the debt forgiven in some instances depending on the outcome of the case. The debtor may be able to recover actual damages, such as wage garnishment costs or out-of-pocket costs for legal fees, as well as punitive damages, which may be as great as three times the amount of actual damages. The debt collector may also be liable to the debtor for other forms of relief, such as attorney fees and court costs. Additionally, the debt collector may be subject to a civil penalty of up to $2,000 for each violation. The Maryland Office of the Attorney General may also investigate cases of debt collection violations and may pursue criminal charges against debt collectors who engage in unfair practices.

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What can happen if a debt collector has made a mistake?

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