On behalf of Law Offices of Mark M. Kratter, LLC on August 02, 2012
Connecticut residents struggling to pay their bills may relate to a recent story about consumer debt. Currently, consumers fed up with credit card debt collection practices are filing lawsuits in droves. Every month since the start of the year, the number of lawsuits filed by debtors and credit card customers has risen. From January through May of this year, there were 6,256 lawsuits filed. This May saw three times as many lawsuits as the same month five years ago.
An attorney for a legal advocacy group believes that lawsuits are rising due to the growth in the industries of debt collection and credit reporting. With the growth comes the aggressive and sometimes underhanded tactics of debt collection, leading to a greater likelihood of misreported consumer information. He believes consumers are beginning to find ways to defend themselves against these practices.
Many of the lawsuits filed allege Fair Debt Collection Practices Act and Fair Credit Reporting Act violations. The FDCPA regulates debt collector behavior, and the FCRA controls consumer credit reports and how they are used. They also regulate the accuracy and privacy of those reports.
While the number of FDCPA violations has actually decreased, consumer advocates believe that, even with federal law preventing unscrupulous behaviors, some debt collectors still prey upon consumers who have credit card debt. Violations of the FDCPA include illegal threats, constant phone calls and continuing to pursue the consumer for payment of the debt after verification has been requested.
Violations of the FCRA include failing to remove negative credit information from a report after the law requires it to be removed, not correcting mistakes when the consumer requests it and failing to provide notification when a consumer report is used. Such violations can detrimentally affect consumers, especially when they seek to use the reports to get a job or for the purpose of obtaining a mortgage.
Any Connecticut resident experiencing credit card debt can understand the frustration of being hounded by debt collectors, especially those attempting to use illegal practices. Consumers appear to be fighting back against these types of practices, but for some people, the amount of debt they have is insurmountable, requiring other choices to be made. For those, bankruptcy can be a viable option to stop harassment from debt collectors once and for all, while laying the groundwork for a return to financial stability.
Source: Fox Business, "Though Bad Debts Fall, Lawsuits Over Collection Practices Rise," Martin Merzer, July 20, 2012
