Common use of Private Right of Action Clause in Contracts

Private Right of Action. (a) A debt management services provider who fails to comply with any of the provisions of this chapter is liable under this section in an individual action for the sum of (i) actual, incidental, and consequential damages sustained by the debtor as a result of the failure; and (ii) statutory damages of up to $1,000. (b) A debt management services provider who fails to comply with any of the provisions of this chapter is liable to the named plaintiffs under this section in a class action for the amount that each named plaintiff could recover under paragraph (a), clause (i), and to the other class members for such amount as the court may allow. (c) In determining the amount of statutory damages, the court shall consider, among other relevant factors: (1) the frequency, nature, and persistence of noncompliance; (2) the extent to which the noncompliance was intentional; and (3) in the case of a class action, the number of debtors adversely affected. (d) A plaintiff or class successful in a legal or equitable action under this section is entitled to the costs of the action, plus reasonable attorney fees.