Collection Industry Reports More Lawsuits Against Consumers Due To Economy

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As we noted earlier in our thoughts on what the economic problems would mean for consumers facing collection, a collection industry report indicates that more collection lawsuits are being filed. The reasons? As “Inside ARM” indicates:

Kaulkin Ginsberg Director Mark Russell gave a couple of reasons for the up-tick in debt collection lawsuits. He said, “I believe that the rise in collections lawsuits is happening for two reasons: 1) collectors want to be top of mind with debtors, and 2) because we are heading into tax return season and creditors and debt buyers may be pursuing judgments more aggressively to utilize tax returns to resolve outstanding debt.”

The report concludes as follows:

Like businesses, consumers are also getting a break from the stereotypically horrid pursuits of debt collection lawyers. “Courts feel they’d like to see us resolve something amicably; certainly some have more sympathy towards consumers,” Stein said.

If you are dealing with collectors, understand that a lawsuit may be filed against you. If this happens, don’t let a default judgment be entered against you – take action instead. Answer the lawsuit and force the debt buyer to prove its case. If you have any questions or want more information from us, please feel free to contact us through our website or call us here.

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