The Faustos

Collection agencies operate under the constant threat of civil judicial reprisal in the course of their operations. But lawsuits claiming violations of the FDCPA are usually small and easily-handled, if they advance at all. While a terrible nuisance, real damage is rare.

But in a California case recently decided, a jury gave a $500,000 judgment to the Faustos against a debt collector ("Jury Awards $500,000 to California Couple in FDCPA Case," May 5). The total included $400,000 in punitive damages. The attorney for the Faustos claimed that it was the largest award a jury has granted to a consumer who sued under the FDCPA. That claim is a little off, but it’s a pretty rare number.

Attorneys we spoke to for the story noted that this is not a trend waiting to happen. This sum of money was tied to a specific set of circumstances. And judging by the responses to the story from readers, there doesn’t appear to be much support for the parties involved.

Still, collection agencies need to be aware that debtors are going to see stories like this and get ideas. Be careful with what you say on the phone.