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Automated Debt-Collection Lawsuits Engulf Courts

 

Automated Debt-Collection Lawsuits Engulf Courts
By ANDREW MARTIN
Published: July 12, 2010

As millions of Americans fall behind on bills, debt collection law firms have been clogging courtrooms with suits seeking repayment.

The New York Times reports that debt buyers have flooded the court houses with automated consumer debt collection lawsuits which are often backed up by insufficient evidence. The article states:

Already, some state legislators and judges have tried to crack down on collection lawsuits, and on Monday, the Federal Trade Commission weighed in, saying the system for resolving disputes over consumer debts was broken and in need of “significant reforms.”
The commission, which says debt collection is its top consumer complaint, proposed that states require collectors to include more information about debts in their lawsuits, including a breakdown of the current balance by principal, interest and fees, and the relevant terms of the original credit contract, if not the contract itself. …

Critics say the business model for some debt buyers and law firms relies on such huge volumes of legal actions that mistakes and abuses are inevitable, in part because the lawsuits are often based on little more than a defendant’s name, address and alleged balance.

As Chicago consumer lawyers we are dedicated to protecting Illinois consumers from unscrupulous debt collectors who abuse consumer rights. With offices located in Chicago, Oak Brook and Wilmette, our Chicago trial lawyers will pursue debt collectors who harrass you by filing lawsuits under the Fair Debt Collection Practices Act and Illinois Consumer Fraud and Deceptive Business Practices Act. You can contact us for a free consultation over the internet by clicking here or by calling (877) 990-4990.