The total number of lawsuits filed by consumers against accounts receivable management firms claiming violations of the Fair Debt Collection Practices Act (FDCPA) increased nearly 30 percent from May to June this year.
According to data provided by WebRecon, LLC, there were 848 lawsuits filed in federal courts by consumers seeking compensation for violations of the FDCPA, up 29.6 percent from May. There were an additional 108 lawsuits filed that claimed violations of the Fair Credit Reporting Act (FCRA).
WebRecon offers a subscription tracking service that identifies consumers and consumer attorneys that engage in FDCPA litigation.
In the second half of June alone, there were 77 different plaintiffs that had filed suit under the FDCPA and FDRA in the past. Combined, those 77 plaintiffs have filed about 532 lawsuits since 2001.
Filings by state followed population statistics, as the states where the most lawsuits originated – California, New York, Florida, Pennsylvania, Illinois and Texas – are the most populous in the country.
Through the first half of 2009, there have been 3,654 FDCPA lawsuits filed in the U.S district courts, a pace that will far exceed the total filed in 2008 ("FDCPA Cases Brought By Consumers Creates New Market Aimed at Collectors,” June 22).