What can you recover for a credit reporting or debt collection violation?

This page explains federal law as it applies to consumers in New York, plus New York law where noted: the remedies Congress and the New York Legislature have set for credit reporting, debt collection, robocall, mortgage servicing and lending violations. KOR Law LLP's consumer protection practice represents consumers in claims against credit reporting agencies, furnishers, debt collectors, credit card companies and mortgage servicers. These statutes were written so that individual consumers can bring claims, which is why many of them shift attorney's fees to the losing defendant.

What does each statute allow?

What counts as actual damages?

Each statute starts with "actual damages" or "actual damage sustained" as a result of the violation (15 U.S.C. 1681n(a)(1)(A), 1681o(a)(1), 1692k(a)(1); 12 U.S.C. 2605(f)(1)(A)). Common categories include money lost, such as higher interest charged after a credit denial, and the consequences of being turned down for credit, an apartment or a job. Evidence matters: denial letters, rate quotes, and records of the dates of disputes and responses. The statutory amounts exist precisely because actual losses in consumer cases can be modest or hard to prove.

When are statutory or punitive damages available?

Statutory damages let a court award a fixed amount or range without proof of a specific dollar loss, but each statute sets its own trigger:

• FCRA: statutory damages of $100 to $1,000 and punitive damages require a willful failure to comply (15 U.S.C. 1681n(a)). Negligence supports actual damages only (1681o).
• FDCPA: "additional damages" of up to $1,000 in an individual action, considering "the frequency and persistence of noncompliance," its nature, and how far it was intentional (15 U.S.C. 1692k(a)(2)(A), (b)(1)).
• TCPA: $500 per violation as a floor under subsection (b), with the court able to treble for willful or knowing violations (47 U.S.C. 227(b)(3)).
• RESPA: up to $2,000 more, but only for "a pattern or practice of noncompliance" (12 U.S.C. 2605(f)(1)(B)).
• GBL 349: the greater of actual damages or $50, enhanced up to three times actual damages, not over $1,000, on a willful or knowing violation (GBL 349(h)).

Because TCPA damages run per call or text, totals can add up quickly where many unlawful calls were made; the elements are covered in when you can sue over robocalls or spam texts.

How is a damages claim built, step by step?

1. Identify each statute violated. One course of conduct can violate several laws.
2. Check the deadlines. They range from one to four years; see how long you have to sue under the FCRA, FDCPA, or TCPA.
3. Document actual harm. Denials, higher rates, out-of-pocket costs, and time spent fixing the problem.
4. Gather proof of willfulness or a pattern. Repeated violations after notice support FCRA statutory damages, FDCPA additional damages and RESPA pattern damages.
5. Count the violations. For TCPA claims, each qualifying call or text.
6. Consider individual or class claims. The FDCPA, RESPA and TILA cap class recoveries by reference to the defendant's net worth (15 U.S.C. 1692k(a)(2)(B); 12 U.S.C. 2605(f)(2); 15 U.S.C. 1640(a)(2)(B)).

What defenses can reduce or defeat recovery?

• Bona fide error (FDCPA). A collector avoids liability if it proves the violation was unintentional and resulted from a bona fide error despite procedures reasonably adapted to avoid it (15 U.S.C. 1692k(c)).
• Do-not-call procedures (TCPA). It is an affirmative defense that the caller established and implemented, with due care, reasonable procedures to prevent unlawful solicitations (47 U.S.C. 227(c)(5)).
• Prompt correction (RESPA). A servicer is not liable if it fixes an error within 60 days after discovering it and before suit or the borrower's written notice (12 U.S.C. 2605(f)(4)).
• Bad faith suits. Courts may award fees to defendants against claims brought in bad faith or for harassment (15 U.S.C. 1681n(c), 1692k(a)(3)).
• Federal compliance (GBL 349). It is a complete defense that the practice complies with rules of the FTC or another federal agency (GBL 349(d)).

What changes the answer?

• Willful or negligent conduct under the FCRA and New York's credit reporting law (15 U.S.C. 1681n, 1681o; GBL 380-l, 380-m).
• The number of violations under the TCPA (47 U.S.C. 227(b)(3), (c)(5)).
• A pattern or practice under RESPA (12 U.S.C. 2605(f)).
• The type of credit under TILA, which sets different statutory ranges (15 U.S.C. 1640(a)(2)(A)).
• Who the defendant is. The FDCPA reaches debt collectors as defined in the statute; furnishers and bureaus fall under the FCRA.
• Timeliness. A late claim recovers nothing.

For example: a collector that keeps calling after being told to stop

Common mistakes

• Assuming every violation pays a fixed amount. Many statutes require willfulness or a pattern for more than actual damages.
• Not tracking each call. TCPA damages are counted per violation.
• Losing evidence of harm. Keep denial letters and rate quotes.
• Skipping the bureau dispute. FCRA furnisher claims depend on it; see how to dispute a credit report error.
• Overlooking New York law. GBL 349 and Article 25 can add claims; see whether New York has its own credit reporting law.
• Filing in bad faith. It can expose a consumer to fee awards (15 U.S.C. 1681n(c)).

What to do this week

1. List each company involved and what it did, with dates.
2. Collect proof of every call, letter, report and denial.
3. Write down your out-of-pocket losses and how the problem affected you.
4. Send any disputes or stop requests in writing and keep copies.
5. Check the deadline for each possible claim.
6. Speak with counsel about which statutes fit and how fees work.

Frequently asked questions

Who pays my lawyer if I win?

Under the FCRA, FDCPA, RESPA and TILA, a successful consumer can recover costs and reasonable attorney's fees (15 U.S.C. 1681n(a)(3), 1681o(a)(2), 1692k(a)(3), 1640(a)(3); 12 U.S.C. 2605(f)(3)). Under GBL 349(h), fees are in the court's discretion for a prevailing plaintiff.

Can a mortgage servicer's errors lead to damages?

Yes, under RESPA for violations of its servicing rules, including actual damages and up to $2,000 for a pattern of noncompliance (12 U.S.C. 2605(f)). See how to make a mortgage servicer fix an error.

Is a debt collector liable for a lawsuit it filed on a stale debt?

Collection conduct, including lawsuits, is measured against the FDCPA's rules, which are summarized in what a debt collector can legally do in New York. New York's three-year limit on consumer credit suits is covered in whether you can be sued on an old consumer debt in New York.

Does the FDCPA apply to the original creditor?

Generally the definition covers businesses collecting debts owed to others, but it includes a creditor collecting its own debts under a name that suggests a third party is collecting (15 U.S.C. 1692a(6)). New York separately regulates creditors' collection practices in GBL 601.

What if I cannot show a dollar loss?

For a willful FCRA violation, the statute lets the court award "any actual damages" or statutory damages of not less than $100 and not more than $1,000 (15 U.S.C. 1681n(a)(1)(A)), and the FDCPA's additional damages and the TCPA's $500 per violation do not depend on a specific dollar loss either (15 U.S.C. 1692k(a)(2); 47 U.S.C. 227(b)(3)). A negligent FCRA violation, by contrast, supports actual damages only.

Can I recover if the error was fixed quickly?

Sometimes not. RESPA protects servicers that correct errors within 60 days of discovery and before suit or written notice (12 U.S.C. 2605(f)(4)), and actual damages require harm caused by the violation.