Consumer Lawsuits over Debt Collection Practices Climb Though Bad Debts Drop

by San Antonio Attorney

While bankruptcies and credit card debts are declining, lawsuits filed by credit card debtors and other borrowers are rising, based on the latest data on filings.

Debt collectors have long been charged with using prohibited tactics. Because of this, the report was unexpected, considering the fact that there are fewer bad debts to deal with. Some experts believe that the surge in lawsuits probably exhibit more aggressive steps of consumers. Others argue that the credit industry is even more intensely going after whatever financial debt is out there.

In May 2012, around 890 consumer credit cases had been filed in 90 federal court districts across the country, based on the data gathered by Transactional Records Access Clearinghouse.

That is a 12.4% boost from the past month. Though it decreased a little from the same month in 2011, the number of consumer credit cases is continuing to grow each month of the year.

Furthermore, almost thrice as many lawsuits were filed in May as were filed 5 years ago. Within the first five months of 2012, 6,256 lawsuits were filed in the U.S. federal courts.

According to an attorney for the Public Justice Center, consumer credit lawsuits are increasing because the credit reporting and debt collection industries are expanding rapidly and same with the rate of recurrence of unethical debt collection methods, together with the reporting of erroneous consumer data and improper use of such data. That is why consumers are learning to defend themselves.

Debt collection agency representatives believe that the statistics ought to be considered cautiously as their remarks could bring some burden since the significant surge in consumer lawsuits is far from other data. Lately, credit card balances, consumer debt, and bankruptcy filings have declined dramatically, although credit card debt increased again in the month of May.


–          Banks and debt collection agencies are often very aggressive in pursuing credit card debt. Because of this, you also need to have an equally aggressive Bankruptcy Lawyer San Antonio to defend your rights.

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