The number of debt collection lawsuits filed against San Diego consumers is still high. Hyde & Swigart estimate over 300 new filings per week against consumers alleged to reside in San Diego County. With a conservative estimate of a 95% default rate, its easy money for banks and junk debt buyers to obtain default judgments against consumers and then move right in for wage garnishments or bank levies.
Over the past years the case load for the courts has doubled based on the number of collection lawsuits filed. In one East County courtroom the case load doubled from approximately 1,800 cases to now over 3,500 cases docketed at one time.
San Diego County is not alone in seeing the number of collection lawsuits against consumers increase. Recently Hyde & Swigart appeared in a San Bernardino courtroom to defend a consumer against credit card collection abuse and appeared 132 on the morning calendar. The Court’s are clearly overburdened by the number of collection lawsuits being filed.
The epidemic of mass filings has gained national attention as well. Recently the FTC issued a report calling the debt-collection litigation and arbitration system “broken.” In its report entitled “Repairing A Broken System” the FTC called on state law makers to require more detailed filings by debt collectors, limiting the ability of debt collectors to freeze consumer’s bank accounts, and urged more consumers to show up and defend themselves.
Collection abuses facilitated through litigation will continue until consumers take action and defend these cases. Forcing banks and junk debt buyers to show up in court and attempt to prove their cases will start to turn the tide in the consumer’s favor.