August 15, 2016

Appeals Court: Consumers can sue corporations for violation of federal law


A federal appeals court has held that consumers can sue when companies fail to comply with legal obligations established by Congress. The case concerned a hospital that sent debt collection letters to consumers without disclosures required by the Fair Debt Collections Practices Act. The court concluded that “Congress has created a new right—the right to receive the required disclosures.” As a result, the consumer can bring a lawsuit when a company fails to comply with the law.

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