Consumer Lawsuits Against Companies Alleging Violations Of Federal Debt Collection, Credit Reporting Laws Surge In 2009

Credit.com's John Ulzheimer writes:

• According to Jack Gordon, CEO of WebRecon LLC, a service that tracks FCRA [Fair Credit Reporting Act] and FDCPA [Fair Debt Collection Practices Act] filings, “we’re on pace to eclipse 8,500 such lawsuits in 2009. That’s a record for any one year.”

• The issue at hand seems to be two-fold. First, more consumers view litigation as an investment in their own credit future. These are the folks who are fed up with the typical credit dispute protocol, which might work fine for 98 percent of disputes, but isn’t 100 percent effective. The percentage who can’t seem to have legitimate errors removed from their credit reports using the bureau’s required methods are starting to find it necessary to escalate their efforts into the courts in order to regain their good credit names.

• The second bunch seems to be coming from the shake down artists.

For more, see Debt Collectors and Creditors Beware: FCRA and FDCPA Lawsuits Skyrocket.