FDCPA Lawsuits Fall Slightly in First Half of August

The number of lawsuits filed against accounts receivable management firms claiming violations of the Fair Debt Collection Practices Act (FDCPA) fell in the first half of August following a broad trend of declines in FDCPA suits in 2012 compared to 2011.

From August 1 to August 15, 2012, suits filed by consumers claiming violations of the FDCPA fell 7.4 percent percent compared to the previous period (the second half of July).

FDCPA lawsuits are down more than 4 percent in 2012 compared to the same point in 2011. But if there is any trend in year-over-year FDCPA suits, it’s one of a narrowing gap.

“Two months ago, the difference in FDCPA lawsuits in 2011 and 2012 was 3.2%,” said Jack Gordon, CEO of WebRecon, LLC. “Six weeks ago it spiked to 6.7%, four weeks ago it was 7%, two weeks ago it was 5.4%, and now it is 4.1%.”

Even with a narrowing gap, the recent growth trend in year-over-year FDPCA filings appears to have slowed. And consumers and their attorney representatives have been focusing on other statutes.

Lawsuits claiming violations of the Fair Credit Reporting Act (FCRA) are up 60 percent over this time in 2011 and Telephone Consumer Protection Act (TCPA) suits have increased nearly 50 percent.