In short, the primary beneficiaries of such suits are the Attorneys, but the actual consumer may be surprised to find out how these suits affect them.
Some Attorneys use the inconsistent state and federal consumer protection laws. These Attorneys look for fast settlements because the Collection Agency will have to spend much more money for a successful defense. While most of these suits are based on phone messages or letters which are easily if not cheaply defended, they have generally been settled to save money.
The Law Firms that sue Agencies is an inside club. In fact, 60 attorneys account for 46 percent of all these law suits. Consumers are limited in damages but Attorney fees are not. These Law Firms routinely get five to ten times as much money as their clients.
Litigation against a Debt Collector does not eliminate any debt owed by the consumer. A settlement with the Debt Collector only resolves the alleged violation. The consumer must still face the possible negative repercussions of an unpaid debt. Attorneys seldom ask for the original debt to be dropped because they know the owners of the debt, usually not the agency, will not go along.
Understanding debt collection and background screening best practices can save your business big money. Building up front applicant screening into your business processes costs you very little, but saves you so much in the end. If you haven't already, partner with a full service debt collection and applicant screening company to guide your business to a place of security and prosperity. Contact us to sign up for a free account and get started protecting your business today.
ABOUT EXECUTIVE CREDIT MANAGEMENT, INC.
Executive Credit Management is a full-service Debt Collection and Applicant Screening agency with over 20 years experience located in Central New Jersey. We provide excellent service in the following areas: Employment Screening, Business Screening, and Tenant Screening. Executive Credit Management belongs to a number of Skip Tracing databases and offers services to help locate and confirm the current address of missing debtors. Other services provided are: litigation evaluation on all lawsuit decisions, improvement of the quality of the applicant data, Lawsuit Monitoring, Handling of Debtor Disputes. Executive Credit Management features the best Call Monitoring System in the Debt Collection industry.