Debt-collection lawyers are increasingly being hauled into court as defendants in Fair Debt Collection Practices Act lawsuits by consumers who use litigation to fend off creditors. Lawyers say the statute's vague and broad language opens the door to cases against firms, and a recent federal court decision that denied litigation immunity to a debt-collection law firm creates even more risk. Other factors behind the trend include mistakes in court filings and the bankruptcy reform law's tougher standards.
June 12, 2007 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
Debt-collection lawyers are increasingly being hauled into court as defendants in Fair Debt Collection Practices Act lawsuits by debt-burdened consumers who use litigation to fend off creditors.
Lawyers say the statute’s vague and broad language opens the door to cases against law firms, and a recent federal court decision that denied litigation immunity to a debt-collection law firm creates even more risk for debt-collection lawyers.
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