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Consumer lawsuits against collections increase, while debt management plan may help avoid dealing with that outcome
By Peggy Stillwell on Mar 22nd, 2010
A recent report from an accounts receivable publication notes that consumers increased their lawsuits against debt collection companies last year.
Relying on data from the Administrative Office of the U.S. Courts, Inside ARM said that the year ending on September 30 2009 saw 6,463 civil cases filed against companies that specialize in debt collection, debt purchasing or other forms of credit reporting. The fiscal year before saw 4.239 cases, while 2005 had 1,192.
Personal finance expert Liz Pulliam Weston noted recently that the increase in filings may indicate that consumers are trying to fight against these companies, which have taken to suing consumers in order to collect debts.
"Collection agencies can buy lists of consumers who have successfully won such suits, presumably so they’ll know who not to mess with," Pulliam Weston wrote.
Rather than have to go so far as to deal with lawsuits or debt collection companies, consumers may consider other alternatives when trying to deal with their finances. One option they might look at is a debt management plan.
Such a plan helps consumers with what they owe by lowering the amount of interest they end up paying. 
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