Early last year, I predicted a record number of consumer credit protection lawsuits would be filed in 2009. The basis for my opinion was the fact that the number of consumer protection lawsuits filed in 2007 was so much higher than in 2006. Well, the final numbers are in, and they are staggering.
According to Jack Gordon, CEO of Michigan-based WebRecon that tracks FDCPA lawsuits and other consumer rights litigation, 2009 has ended and the number of FDCPA lawsuits has shattered 2008's record number. There were 8,287 FDCPA lawsuits filed in 2009, which is up from 5,188 filed in 2008. The number of FCRA lawsuits filed in 2009 was 1,174 compared to 1,164 in 2008.
The FDCPA, or Fair Debt Collection Practices Act, protects consumers from abusive collection practices by debt collectors. And with 2008 and 2009 being record years for credit card defaults, it's not a surprise that more bad debt has been consigned or outright purchased by debt buyers for the purposes of collection. And while the law does do a good job protecting consumers from the bad apples within the collection industry, some would say that it goes too far and hamstrings collection efforts.
The FCRA, or Fair Credit Reporting Act, provides for the accuracy and fairness of credit reporting. It also mandates that the credit reporting agencies adopt reasonable procedures to ensure maximum possible accuracy of credit reports.
What does 2010 hold for consumer protection lawsuits? Many experts, including this one, predict more of the same.
John Ulzheimer – Credit scoring and credit reporting expert and author, John is the President of Consumer Education for Credit.com. Formerly with Equifax and Fair Isaac, John shares his unique insight of the inner workings of credit scoring models and the credit reporting industry on CreditBloggers.com.
John Ulzheimer Formerly with Equifax and Fair Isaac, John shares his unique insight of the inner workings of credit scoring models and the credit reporting industry on Credit.com News & Advice.
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Good Information… Thanks for sharing.
I was swimming in debt with no way out. Collection agencies were calling me left and right.
A friend of mine suggested I try
FDCPA to learn my legal rights.
It was the best decision I ever made.
They helped me through everything so the harassment stopped.
Life is less stressful now.