FDCPA Lawsuits Fall Significantly in First Half of May; Filings Off Nearly 5% for Year

The number of lawsuits filed against accounts receivable management firms claiming violations of the Fair Debt Collection Practices Act (FDCPA) fell dramatically in the first half of May after an uptick in the last 15 days of April.

From May 1 to May 15, FDCPA lawsuits filed by consumers fell 19.5 percent from the previous 15-day period and were down nearly 17 percent compared to the same period in 2011.

For the full year 2012 so far, total FDCPA lawsuits are down 4.6 percent compared to numbers at the same point in 2011. Lawsuits claiming violations of the Truth in Lending Act (TILA) are also down 39 percent year-over-year.

“It is beginning to look like FDCPA litigation may have peaked in 2011 for the time being, though a few more months of analysis will provide a stronger basis for that theory,” said Jack Gordon, CEO of WebRecon LLC, a firm that tracks the lawsuits and provides data to the ARM industry.

Where FDPCA suits are down, Fair Credit Reporting Act (FCRA) and Telephone Consumer Protection Act (TCPA) claims are up, with year-over-year growth of 75 percent and 93 percent, respectively.

FDCPA and Other Consumer Lawsuit Statistics, May 1-15, 2012

Full Statistics

There were about 526 lawsuits filed under consumer statutes in the first half of May 2012. Here is an approximate breakdown:

• 443 FDCPA
• 109 FCRA
• 42 TCPA
• 23 TILA

Summary

• Of those cases, there were about 557 unique plaintiffs (including multiple plaintiffs in one suit).
• Of those plaintiffs, about 182, or 33%, had sued under consumer statutes before.
• Combined, those plaintiffs have filed about 1109 lawsuits since 2001
• Actions were filed in 118 different US District Court branches.
• About 605 different collection firms and creditors were sued.

The top courts where lawsuits were filed:

• 32 Lawsuits: New York Eastern District Court – Brooklyn
• 30 Lawsuits: Illinois Northern District Court – Chicago
• 27 Lawsuits: Colorado District Court – Denver
• 26 Lawsuits: California Central District Court – Western Division – Los Angeles
• 19 Lawsuits: Pennsylvania Eastern District Court – Philadelphia
• 13 Lawsuits: Michigan Eastern District Court – Detroit
• 12 Lawsuits: California Southern District Court – San Diego
• 12 Lawsuits: Georgia Northern District Court – Atlanta
• 11 Lawsuits: Missouri Eastern District Court – St. Louis – Eastern Division
• 10 Lawsuits: California Central District Court – Southern Division – Santa Ana

The most active consumer attorneys were:

• Representing 17 Consumers: David M Larson
• Representing 17 Consumers: Sergei Lemberg
• Representing 14 Consumers: George T Martin III
• Representing 13 Consumers: Adam J Fishbein
• Representing 10 Consumers: Craig T Kimmel
• Representing 10 Consumers: Gary D Nitzkin
• Representing 9 Consumers: Edwin D Hoskins
• Representing 9 Consumers: Kristi C Kelly
• Representing 9 Consumers: Tammy L Hussin
• Representing 8 Consumers: Joseph M Meinhardt

Statistics Year to Date

4691 total lawsuits for 2012, including:

• 4102 FDCPA
• 857 FCRA
• 383 TCPA
• 319 TILA

Number of Unique Plaintiffs: 4791 (including multiple plaintiffs in one suit)

The most active consumer attorneys of the year:

• Representing 127 Consumers: Sergei Lemberg
• Representing 123 Consumers: David M Larson
• Representing 112 Consumers: Craig T Kimmel
• Representing 81 Consumers: David J Philipps
• Representing 71 Consumers: Dennis R Kurz