FDCPA Lawsuits on Track for Third Straight Year of Declines

  • Email
  • Print
  • Printing Articles

    1. Click here to print!
    2. ...or print directly from your browser by choosing File > Print... from the menu or by pressing [Ctrl + P]. Our printer-friendly stylesheet will make sure extraneous website stuff isn't printed.
    3. You're done!

    Close this message.

  • Comments
  • RSS

Lawsuits against ARM companies filed by consumers under the Fair Debt Collection Practices Act (FDCPA) are on track to decline again in 2014. If the trend holds, it would be the third-straight year of declines in total FDCPA lawsuits after years of rapid growth.

In the first four months of 2014, there have been 3,294 FDCPA cases filed in federal courts across the U.S. That number is 18 percent below the total at the same time last year, according to data provided by WebRecon LLC.

In April 2014 alone, there were 947 FDCPA suits filed, down 17 percent from April 2013, but actually up eight percent from the previous month.

FDCPA lawsuits filed against ARM firms rose rapidly from 2005 to their peak of 12,330 in 2011. Ever since then, fewer cases claiming FDCPA violations have showed up in the court system. Industry watchers had expected the rate of decline to slow as the “market” for plaintiff cases corrected. But it actually appears that the decline is accelerating.

FDCPA-suits-April2014

While FDCPA suits decline, cases claiming violations of the Telephone Consumer Protection Act (TCPA) continued their explosive growth in 2013.

TCPA cases were up nearly 70 percent in 2013. Consumers filed nearly 1,900 suits seeking remedy under the statute intended for telemarketers. In April 2014, there were 235 such cases filed, up 47 percent from April 2013. For the year, total TCPA lawsuits are up 46 percent from the same point last year.

TCPA-suits-April2014The recent growth in TCPA lawsuits largely mirrors the increase in FDCPA suits seen in the middle and end periods last decade. In 2008, there were only 14 TCPA cases filed, followed by just 31 the following year. But beginning in 2010, consumers and their attorneys saw an opportunity and began focusing on TCPA cases. While the total number of cases is still dwarfed by FDCPA cases, the trend in filings has caused many ARM firms to shift legal resources.

  • Email
  • Print
  • Printing Articles

    1. Click here to print!
    2. ...or print directly from your browser by choosing File > Print... from the menu or by pressing [Ctrl + P]. Our printer-friendly stylesheet will make sure extraneous website stuff isn't printed.
    3. You're done!

    Close this message.

  • Comments
  • RSS

Posted in Collection Law Firms, Collection Laws and Regulations, Debt Buying, Debt Recovery, FDCPA, Featured Post, TCPA .

×
Subscribe to our email newsletters

Continuing the Discussion

We welcome and encourage readers to comment and engage in substantive exchanges over topics on insideARM.com. Users must always follow our Terms of Use. Also know that your comment will be deleted if you: use profanity, engage in any kind of hate speech, post an incoherent or irrelevant thought, make a point of targeting anyone, or do anything else we find unsavory. Your comment will be posted under your current Display Name, shown below. If you'd like to change your Display Name, you must update it on the My Profile page.

  • This is interesting data. It leaves me with further questions that I would love to explore. For instance, has the focus merely shifted from FDCPA to TCPA because it’s perceived as an easier target? Is it that there has been more case law to develop precedence in FDCPA or is it the Hawthorn effect and best practices are at work? Maybe a combination? Thoughts?

  • avatar ryon gambill says:

    I’m sure TCPA damage awards are larger and more voluminous due to the dialers we use to make many calls to each debtor

Leave a Reply