AJC Addresses Debt Collector Lawsuit Problems

The Atlanta Journal Constitution has an article regarding the problems that go along with small claims debt lawsuits and the impact it has on consumers:

Keys is among the tens of thousands of metro Atlanta residents who get dragged into small-claims courts over debts. But the system, set up to help neighbors resolve disputes, essentially stacks the deck against consumers like Keys, an Atlanta Journal-Constitution examination found.

Debt collectors buy up thousands of cases and inundate the courts with lawsuits for any debt of $15,000 or less, turning the courts into debt collection mills. They face off with consumers who can’t afford to hire attorneys and are often overwhelmed by the process.

This is a huge problem in Alabama as well. Hundreds of cases are filed by debt collectors and many, if not the vast majority, are won because the consumer can’t afford an attorney to assist with the claims.

Having an attorney can help answers these questions:

Were consumers properly served with court papers? Is there evidence tying them to the debt? Do they recognize the name of the creditor they supposedly owe money to? Is the debt too old to collect? Have illegal fees been tacked on?

and:

Consumers, by law, can raise objections about the evidence against them, and a technical error or missing or misplaced document could lead to a dismissal of their case. But most debtors don’t understand their rights, consumer advocates say. Some have made mistakes before they even get to court that limit any objection they might raise.

If you have been sued by a debt collector and need help, please contact our office for a free consultation.