Debt Collection Lawsuits Seeing All-time Highs

: Chris Lee Law Firm

  Filed under: News

fdcpaIt is no surprise that consumers have become more vigilant against unscrupulous debt collection practices. With so many fraud and scams going around, people have become more educated as to how to spot a non-reputable company, as well as what their rights are as a consumer.

Fair Debt Collection Practices Act

The FDCPA was created by the Federal Trade Commission to crack down on abusive and fraudulent debt collection practices. The FTC receives numerous complaints each day that must be investigated to determine if any violations have occurred. Last month, the FTC received a surge in complaints and, as a result, the number of lawsuits against certain companies have skyrocketed.

Law firms around the country have seen an influx in the number of plaintiffs seeking justice against debt collectors and lenders. A total of 804 lawsuits were filed in September of this year citing violations of the FDCPA. Of the cases filed, nearly 2/3 were first time plaintiffs, many cases filed with multiple plaintiffs seeking resolution from a single entity. It was reported that of the cases filed, there were 697 different defendants, meaning that 697 different lenders or debt collection companies are in the process of being sued. The bulk of the lawsuits were filed in New York, Illinois, Pennsylvania and California.

 


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