The number of lawsuits brought against debt collectors is on the rise. In 2007 to 2008, the number of lawsuits on the Fair Debt Collection Practices Act (FDCPA) and Fair Credit Report Act (FCRA) has reached 5000 by the last quarter. But in 2009, there are already 5000 lawsuits filed by the middle of the year.

What may be main cause for this increase in FCRA and FDCPA lawsuits?  There are several theories on this matter.

• Increased consumer rights awareness

Because of the accessibility of information via the internet, consumers are now becoming more aware of their rights. Most consumers will often search the internet for information instead of consulting or hiring the services of a lawyer, which can actually be an additional cost. Because of this, these consumers become more conscious of their rights and become more confident to act when they feel that their rights are violated.

• Work overload for debt collectors

Because of the economic crisis, a lot of consumers are already in default of their monthly payments on their credit cards and loans. This means more work for a debt collector. Unfortunately, even if they have spoken to a debt collector, they have not done anything about it, because they cannot afford to do so yet at their present situation. And because of this, they will be contacted constantly by those debt collectors.

Since these debt collectors need to be vigilant in their collection efforts, they have to keep on calling those people with late payments. This constant calling can eventually lead them to committing an error, especially when they are pressured to use under-trained debt collectors just to keep up with the bulk of work, giving way for the consumer to exercise their rights based on FDCPA.

• Upward surge in lawsuits continue indefinitely

Because of this upward surge in the number of FCRA and FDCPA lawsuits filed against debt collectors, they are now considering the amendment of their practices that have led to the filing of a lawsuit against them. They consider this better than shouldering the enormous losses that they will continuously have while more and more lawsuits are filed against them. To learn more about FDCPA & FCRA, consult a Texas credit attorney for details.