Why are unpaid debt court cases rising?
Why are unpaid debt court cases rising?
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Notable Quotes
"It’s troubling."
— Alexa Rosenbloom , Academic
"It’s important to use that information to try to better work with individuals who are being sued, provide the resources, provide procedures that work."
— April Kuehnhoff , Activist
Key People
Director of the consumer protection clinic at the Legal Services Center of Harvard Law School.
Senior attorney at the National Consumer Law Center.
South Florida attorney leading consumer filings in March.
Laura Pomfret is the chief executive of women's finance community Financielle.
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Why are unpaid debt court cases rising?
An Iowa homeowner is challenging the state's tax-sale system, arguing it unconstitutionally strips property owners of their home equity over unpaid tax debts.
The number of consumer debt cases filed in Massachusetts state courts increased by over 60% in two years, with major debt buyers filing the majority of these cases.
Debt collection lawsuits have surged to pre-pandemic levels, with up to 4.7 million cases filed in 2022, indicating a significant increase in consumer debt litigation.
Consumer litigation filings increased sharply in March 2026, driven by substantial month-over-month gains in Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) lawsuits.
Rising credit card balances and high interest rates are putting more borrowers in difficult positions, leading to an increase in debt collection lawsuits.
Consumer litigation activity reversed course in March 2026, with FDCPA and FCRA both recording strong gains of 17.3% and 18.9%, respectively.
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