Lawsuits Associated with Various Credit Acts Hit New Highs
Lawsuits associated with the Fair Credit Reporting Act, Telephone Consumer Protect Act and Truth-in-Lending Act all set new records last year, according to federal data compiled by WebRecon.
Analysts determined that FCRA litigation had a big jump after several years of relatively flat numbers, while TCPA litigation more than doubled and TILA nearly tripled over the previous year.
WebRecon also found that Fair Debt Collection Practices Act litigation set a record as well, but fell just short of the company’s projection of 12,000 cases with 11,811 cases filed in 2011.
“The growth rate of FDCPA litigation has plummeted over the last two years, though it is important to note that the number of FDCPA lawsuits filed does continue to grow each year, just on a shrinking trajectory,” analysts explained, adding that FDCPA litigation hit its peak growth in 2009 when it rose 52 percent over the previous year’s numbers.
Breaking down the data geographically, WebRecon discovered the Denver District Court saw the most suits filed in it, totaling 658. Philadelphia was second with 634 suits. Los Angeles was third with 623, followed by Chicago with 592 and Newark, N.J., with 486.
By state, California led the nation with 1,654 lawsuits in 2011. Florida was next with 1,146 lawsuits, followed by New York (1,128), Pennsylvania (940) and New Jersey (711).
WebRecon offered annual comparisons of FDCPA, FCRA, TCPA and TILA litigation. These statistics are for cases filed in federal U.S. District Courts only.
—2011: 11,811 FDCPA cases, 1,838 FCRA cases, 660 TCPA cases, 1462 TILA cases.
—2010: 10,859 FDCPA cases, 1,295 FCRA cases, 272 TCPA cases, 529 TILA cases.
—2009: 9,135 FDCPA cases, 1,174 FCRA cases.
—2008: 6,025 FDCPA cases, 1,164 FCRA cases
—2007: 4,372 FDCPA cases, 1,347 FCRA cases.
—2006: 3,710 FDCPA cases, 955 FCRA cases.
—2005: 3,215 FDCPA cases.