Collection Lawsuits Spike In Late September

Fair Debt Collection Practices Act (FDCPA) lawsuits spiked to 441 in the Sept. 16-30 period, compared to 390 in the first half of September, according to data from U.S. District Courts. The number of consumer statute lawsuits in the second half of the month totaled 481, up from 421 in the prior reporting period. The total includes 59 Fair Credit Reporting Act (FCRA) lawsuits and 26 Truth-in-Lending Act cases.

Between Sept. 16-30, an estimated 456 different collection agencies and creditors were sued, up from an estimated 409 in the first half of September. Of the total, there were approximately 511 unique plaintiffs, including 123 who previously had sued under consumer statutes. In total, those plaintiffs have filed an estimated 791 lawsuits since 2001, according to WebRecon LLC, the Grand Rapids, Mich.-based research firm that compiles the totals from the courts.

Year-to-date, plaintiffs have filed 8,581 lawsuits, including 8,033 FDCPA cases, 946 FCRA cases and 409 Truth-in-Lending actions. Sergei Lemberg is the most active consumer attorney this year, representing 270 consumers in lawsuits.

Sergei Lemberg is the most active consumer attorney this year, representing 254 consumers in lawsuits. In June, Lemberg criticized the collection industry in a statement to the press, see story, for blaming consumer attorneys for a spike in lawsuits, which he argued are rising because of increasingly aggressive tactics by collectors.

Editor's Note: To comment on this story, contact Darren Waggoner at 815.463.9008 or darren.waggoner@sourcemedia.com.