26 USC 7433 - Civil damages for certain unauthorized collection actions

U.S Code last checked for updates: Nov 25, 2024

§ 7433.

Civil damages for certain unauthorized collection actions

(a)

In general

(b)

Damages

In any action brought under subsection (a) or petition filed under subsection (e), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the lesser of $1,000,000 ($100,000, in the case of negligence) or the sum of—

(1)

actual, direct economic damages sustained by the plaintiff as a proximate result of the reckless or intentional or negligent actions of the officer or employee, and

(2)

the costs of the action.

(c)

Payment authority

(d)

Limitations

(1)

Requirement that administrative remedies be exhausted

(2)

Mitigation of damages

(3)

Period for bringing action

(e)

Actions for violations of certain bankruptcy procedures

(1)

In general

(2)

Remedy to be exclusive

(A)

In general

(B)

Certain other actions permitted

Subparagraph (A) shall not apply to an action under section 362(h) of such title 11 for a violation of a stay provided by section 362 of such title; except that—

(i)

administrative and litigation costs in connection with such an action may only be awarded under section 7430; and

(ii)

administrative costs may be awarded only if incurred on or after the date that the bankruptcy petition is filed.

(Added Pub. L. 100–647, title VI, § 6241(a), Nov. 10, 1988, 102 Stat. 3747; amended Pub. L. 104–168, title VIII, §§ 801(a), 802(a), July 30, 1996, 110 Stat. 1465; Pub. L. 105–206, title III, § 3102(a), (c), July 22, 1998, 112 Stat. 730.)

cite as: 26 USC 7433