More consumers taken to court over credit card debt
By Credit.com Staff
Lenders like Citi, Discover and Capital One have been suing consumers over their delinquent credit card debt at record rates for the last two years, but others have increased their volume as well, according to a report in Pennsylvania newspaper the Lancaster Sunday News. In July and August alone, 428 consumers in Lancaster County were hit with lawsuits from credit card companies, and experts predict that the number will only increase in the near future.
"The economy is bad, bad, bad and banks, collectors and debt purchasers are just getting more aggressive out of desperation," Mitchell Sommers, a consumer lawyer, told the newspaper.
Debt collection companies are also increasing the number of cases they take to court, the report said. But they are specifically going after consumers with clean credit histories in hopes of reaching a settlement prior to trial.
Despite the increase in cases, consumers nationwide have been paying off their credit card debt with greater frequency in recent months.