A consumer lawsuit is a civil case a person brings against a company whose conduct may have broken a consumer-protection law. Across the United States, three main federal statutes are involved in this work: the FDCPA for debt collectors, the FCRA for credit and background reports, and the TCPA for certain calls and texts. Whether a case exists depends on the facts.
Some people searching for this are not looking for a fight. They are holding a stack of collection letters, or a credit report that still shows an account they disputed months ago, or a phone that lights up with the same number every afternoon. Some are embarrassed by the debt or the error and unsure whether a company's behavior is simply unpleasant or something the law actually addresses. This page explains which federal statutes apply, what conduct may violate them, what remedies they make potentially available, how agency complaints differ from lawsuits, and what time limits exist.
What a Consumer Lawsuit Is and Which Federal Laws Apply
A consumer lawsuit, in plain terms, is a civil action a consumer may bring under a federal statute when a company's conduct may have violated that statute's requirements. The statute supplies both the rules the company must follow and, where Congress provided one, the consumer's right to go to court. That right is called a private right of action.
The Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq. (FDCPA), governs debt collectors. A debt collector, as the statute uses the term, includes a person whose business has the principal purpose of collecting debts, or who regularly collects or attempts to collect debts owed or due, or asserted to be owed or due, another. Congress stated its purpose in 15 U.S.C. § 1692(e): "to eliminate abusive debt collection practices by debt collectors."
The Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq. (FCRA), governs several kinds of companies, including the three described next. A consumer reporting agency is a company that assembles information about people into reports, including the credit bureaus and background-screening companies. A furnisher is a company, such as a lender or collector, that sends account information to those agencies. A user is a company, such as an employer, landlord or creditor, that obtains a consumer report to make a decision. Under 15 U.S.C. § 1681(b), the FCRA requires consumer reporting agencies to "adopt reasonable procedures" with regard to the "confidentiality, accuracy, relevancy, and proper utilization" of the information.
The Telephone Consumer Protection Act, 47 U.S.C. § 227 et seq. (TCPA), governs certain calls and texts.
Federal law applies across the United States; state law may add protections, and those differ from state to state.
The three statutes at a glance
| Statute | Who it covers | Remedy described on this page | Time limit described on this page |
|---|---|---|---|
| FDCPA | Debt collectors, as the statute defines the term | Per the CFPB: up to $1,000 in damages plus compensation for actual harm, and possibly lawyer fees and costs | Per the CFPB: within one year of the offense |
| FCRA | Consumer reporting agencies, furnishers and users of reports | Per the CFPB: damages and attorney fees; statutory and punitive damages for willful noncompliance | Per the CFPB: time limits apply; the FCRA's enforcement provision allows an action until the earlier of 2 years after discovery of the violation or 5 years after it occurs |
| TCPA | Callers and senders of certain calls and texts | Injunction, actual monetary loss or $500 per violation, whichever is greater; up to three times for willful or knowing violations | Not described on this page |
Conduct That May Violate Federal Consumer Protection Statutes
Seeing a situation described in a list of prohibited conduct can be unsettling, and it is still only the beginning of the question, because each statute attaches conditions.
Debt collection. The Consumer Financial Protection Bureau's page on debt-collector harassment lists conduct it describes as harassment, including repetitious calls or electronic messages intended to harass, oppress or abuse, obscene or profane language, threats of violence or harm, and calling without giving a name. The same page lists false, deceptive or misleading practices, including misrepresenting the amount owed, falsely claiming to be an attorney, false threats of arrest, and threats to do things that cannot legally be done or that the collector does not intend to do. Such conduct may violate 15 U.S.C. § 1692 et seq. only if the company is a debt collector as the statute defines that term. Contact with other people is limited too: under 15 U.S.C. § 1692c(b), a debt collector generally may not communicate with third parties about the debt without the consumer's prior consent given directly to the collector, a court's express permission, or another exception the statute provides. The rules for debt collectors calling family explain that limit further.
Credit and background reports. A consumer reporting agency that reports inaccurate information, or that fails to conduct a reasonable reinvestigation (a re-check of disputed information after a consumer disputes it), may violate 15 U.S.C. § 1681 et seq.; a furnisher that keeps supplying information it should have corrected may as well, and a user that obtains or uses a consumer report improperly may too. The CFPB notes that an agency need not investigate a dispute it finds "frivolous."
Calls and texts. Under 47 U.S.C. § 227(b)(1)(A)(iii), it is unlawful to call a cell phone using an automatic telephone dialing system or an artificial or prerecorded voice. The exceptions include calls made for emergency purposes and calls made with the called party's prior express consent. The statute defines an automatic telephone dialing system in 47 U.S.C. § 227(a)(1) as equipment with the capacity to store or produce telephone numbers to be called, using a random or sequential number generator, and to dial such numbers. Prior express consent means, in plain words, permission the called party gave before the call. In its information-sharing provision, 47 U.S.C. § 227(i)(1)(A), the statute also refers to "a text message sent in violation of subsection (b)."
Under all three statutes, the details of who acted, what was said or sent, and when, decide whether the conduct crosses the line.