Home > 2011 > Managing Debt > Bumper Crop of Lawsuits Hit Creditors, Collections Firms

Bumper Crop of Lawsuits Hit Creditors, Collections Firms

Advertiser Disclosure Comments 0 Comments

scalesofjustice_Alex_CCFlickrConsumers filed 570 federal lawsuits against debt collectors and creditors in just the last two weeks of March, the highest number so far this year, according to a tally by PaymentsSource.com. It was the most lawsuits filed in a two-week period all year.

The vast majority of the suits, 562, alleged violations of the federal Fair Debt Collection Practices Act. Another 60 involved companies that allegedly broke the Community Reinvestment Act, and 14 alleged that companies violated the Truth in Lending Act.

Some suits listed more than one violation. The lawsuits were filed by 626 plaintiffs against 515 different companies. All the lawsuits were all filed in the U.S. District Court system.

The high number of suits filed between March 16-31 brought the total number of lawsuits pending against collection agencies and creditors to 3,187, including 2,682 allegations that the companies violated the Fair Debt Collection Practices Act, PaymentsSource.com found.

[Consumer Resource: 11 Ways A Debt Collector May Be Breaking the Law]

Image: Alex, via Flickr.com

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.