It is common for some Law Firms to sue Financial Institutions such as banks or debt collection agencies for technical violations. The Federal Courts allow for the granting of damage claims even if there is no indication that any damage occurred.
This is an expensive procedure and you are probably assuming a share of the damage through higher fees. The Federal courts now allow assumed damages.
The ACA, the most significant organization of Debt Collection Agencies, has submitted a brief to the U.S. Supreme Court requesting that the Court examine the carte blanche allowance of damages without proof. If successful, the ACA will eventually obtain a verdict requiring damage to be proven before litigation can take place.
If successful, this will lower rates for a wide variety of financial services. It could also mean that your company could not be held liable for assumed damages in a class action suit.
Of course, class action suits won’t go away. The difference will be that they can’t be based on damages that can’t be proven.
Take a look at this link for the details.
Understanding debt collection and background screening best practices can save your business big money. Building up front applicant screening into your business processes costs you very little, but saves you so much in the end. If you haven't already, partner with a full service debt collection and applicant screening company to guide your business to a place of security and prosperity.
ABOUT EXECUTIVE CREDIT MANAGEMENT, INC.
Executive Credit Management is a full-service Debt Collection and Applicant Screening agency with over 20 years experience located in Central New Jersey. We provide excellent service in the following areas: Employment Screening, Business Screening, and Tenant Screening. Executive Credit Management belongs to a number of Skip Tracing databases and offers services to help locate and confirm the current address of missing debtors. Other services provided are: litigation evaluation on all lawsuit decisions, improvement of the quality of the applicant data, Lawsuit Monitoring, Handling of Debtor Disputes. Executive Credit Management features the best Call Monitoring System in the Debt Collection industry.