Fair Debt Settlement PracticesEnforcement of the Fair Debt Settlement Practices Act

Section § 1788.305

Explanation

This law involves debt settlement providers and payment processors needing to follow specific rules. If they break these rules, consumers can sue them for damages, including statutory damages between $1,000 to $5,000 per violation, actual losses, and other potential remedies like injunctions or relief the court finds suitable. If consumers win the case, they can also recover legal costs and attorney fees. However, if the debt provider or processor succeeds, the consumer might have to pay their attorney fees if the court finds the consumer's case wasn't in good faith. Debt settlement providers or payment processors aren't liable if they can prove the violation was an honest mistake despite having checks in place to prevent errors. The lawsuit must be filed within four years of either the last payment made by the consumer or when the consumer knew or should have known about the violation.

(a)CA Civil Law Code § 1788.305(a) A debt settlement provider and a payment processor shall comply with this title.
(b)CA Civil Law Code § 1788.305(b) A consumer may bring a cause of action against a debt settlement provider and a payment processor for violation of any provision of this title in order to recover or obtain any of the following:
(1)CA Civil Law Code § 1788.305(b)(1) Damages in an amount equal to the sum of the following:
(A)CA Civil Law Code § 1788.305(b)(1)(A) Statutory damages in an amount to be determined by the court of no less than one thousand dollars ($1,000) and no more than five thousand dollars ($5,000) per violation of this title.
(B)CA Civil Law Code § 1788.305(b)(1)(B) Any actual damages sustained by the consumer as a result of the violation.
(2)CA Civil Law Code § 1788.305(b)(2) Injunctive relief.
(3)CA Civil Law Code § 1788.305(b)(3) Any other relief that the court deems proper.
(c)Copy CA Civil Law Code § 1788.305(c)
(1)Copy CA Civil Law Code § 1788.305(c)(1) In the case of any successful cause of action under this section, the court shall award costs of the action, together with reasonable attorney’s fees as determined by the court.
(2)CA Civil Law Code § 1788.305(c)(2) Reasonable attorney’s fees may be awarded to a prevailing debt settlement provider and a prevailing payment processor upon a finding by the court that the consumer’s prosecution of the cause of action was not in good faith.
(d)CA Civil Law Code § 1788.305(d) A debt settlement provider or a prevailing payment processor shall have no civil liability for damages under this section if the debt settlement provider or a prevailing payment processor shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, and occurred notwithstanding the maintenance of procedures reasonably adopted to avoid any error.
(e)CA Civil Law Code § 1788.305(e) A cause of action brought under this section shall be brought within four years of the latter of the following dates:
(1)CA Civil Law Code § 1788.305(e)(1) The last payment by or on behalf of the consumer.
(2)CA Civil Law Code § 1788.305(e)(2) The date on which the consumer discovered or reasonably should have discovered the facts giving rise to the consumer’s claim.
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Section § 1788.306

Explanation
In California, you can't give up your rights under this specific law because doing so goes against public policy, and any agreement that tries to make you waive these rights won't hold up in court.
Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable.
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Section § 1788.307

Explanation

This law states that if one part of the law is found to be invalid or unenforceable, it doesn't affect the rest of the law. The remaining parts can still be applied and enforced on their own.

The provisions of this title are severable. If any provision of this title or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
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