Federal Trade Commission Tells Courts to Fix Debt Dispute Process


A report published by the Federal Trade Commission finds the process for resolving consumer debt collection disputes in need of significant improvement. The report finds it too burdensome and inefficient for a debtor to effectively articulate and assert defenses in court.

If the judge reads credit card agreements and billing statements, he could peel back the layers on the case to confirm the consumer’s position that the bank’s lawsuit lacks merit. Nobody should have to defend themselves in a court that does not take action to dismiss invalid debt claims.

The FTC report finds that even where a debtor does properly dispute debt in court, it often leads to adjournment and rescheduling of cases, requiring defendants to appear in court multiple times in order to resolve one single debt account.

For many debtors, employment or family obligations stand in the way of returning to court time and again. When coupled with a judge’s disinterest in challenging the bank’s financials, consumers frequently end up discouraged or prevented from having their voice heard in a meaningful way by the government’s debt collection court system.

Consider hiring an attorney from our consumer defense law firm to a broken court on your behalf. We know how to present your case in a clear and aggressive way, and protect your rights as a borrower under a consumer credit contract.

Contact us for a free discussing regarding the problems with debt collectors identified in the Federal Trade Commission’s report, including:

  1. Flimsy evidence the money is owed to the creditor
  2. Inadequate notice to defendants that they have been sued in court
  3. Low level of Answers being filed to debt collection lawsuits
  4. Enforcement of judgments by levying on exempt funds, including government benefits funded by taxpayers
  5. Violation of the debt collection statute of limitations

While the FTC recognizes the importance of the consumer credit industry in helping out people who need to make purchases on credit, the industry’s practices with respect to recovering balances owed on default accounts requires additional regulatory oversight.

Our debt defense attorneys have represented hundreds of consumers in court. Make use of our experience to protect your rights in the debt dispute process.