Over the past few years, many Americans have struggled with rising costs of living, medical expenses, and high-interest debt. With protections from the pandemic fading and stimulus measures ending, there’s been a sharp escalation in debt collection lawsuits nationwide. This trend poses serious risks for consumers, especially those with limited income or who are unaware of their legal rights.

At Ginsburg Law Group, we see this playing out in our debt defense practice, as more clients are being sued by debt collectors, debt buyers, or original creditors over old or disputed debts. Knowing the landscape, the laws, and your defenses can make all the difference.

What the Data Shows

• Debt collection lawsuits have surged in 2023–2024, in many jurisdictions surpassing pre-pandemic levels. Pew Charitable Trusts
• Many of these lawsuits are brought by debt buyers, entities that purchase old or charged-off debts. These entities often lack documentation or proof necessary under law.
• The CFPB’s 2023 annual report under the Fair Debt Collection Practices Act (FDCPA) highlights medical debt as a major area of concern: complaints include cases where debts are wrongfully attributed, the amounts are inaccurate, or the consumer never incurred the debt. Consumer Financial Protection Bureau

Why the Surge?

Several contributing factors:

1. Expiring Protections: Pandemic-era forbearance, moratoria, or debt relief programs have ended or rolled back, leaving many consumers more exposed.
2. Economic Pressure: Inflation, job instability, medical bills, and increases in rent or housing costs have squeezed household budgets — making even small debts harder to pay.
3. Debt Buyers’ Business Model: Debt is often sold after being “warehoused” for years; the chain of ownership can get murky, documentation weak. Effectively defending against those suits requires demanding proof of debt, validating ownership, and ensuring compliance with state and federal laws.

Risks for Consumers

• Judgments: If a consumer doesn’t respond to a lawsuit (or the response is deficient), the collector may win by default. Once a judgment is entered, garnishments of wages or bank accounts, liens, or levies can follow.
• Incorrect Amounts or Fraudulent Claims: Many plaintiffs in these litigation cases rely on generic or mass-produced affidavits, insufficient documentation, or invalid assignments of debt.
• Statute of Limitations: Some debts are too old to be legally enforceable; collectors may still file suits, hoping the defendant doesn’t defend.

What You Can Do / Legal Defenses

Here are ways consumers can protect themselves and assert rights:

• Always respond to summons — even if you believe the debt is invalid. Not answering often means losing by default.
• Demand verification of the debt, especially when the plaintiff is a debt buyer. Ask for contract assignments, notice of default, exact amounts, itemized fees.
• Check the statute of limitations in your state: if expired, you can sometimes get a case dismissed.
• Use state/federal consumer protection laws, such as the FDCPA (for abusive or misleading collection practices) or Fair Credit Reporting Act (if credit reports are incorrect).
• Seek legal representation: lawyers familiar with debt defense can navigate complex procedural rules, file motions to dismiss or for summary judgment, and negotiate favorable outcomes.

Role of Ginsburg Law Group

At Ginsburg Law Group, we assist consumers in exactly these situations. Our debt defense team:

• evaluates whether a lawsuit is valid, timely, and properly filed;
• challenges improper documentation or debt ownership;
• checks for violations under FDCPA, FCRA, and state-specific debt collection laws;
• works to avoid default judgments, and when necessary, sets aside improper ones;
• negotiates settlements or dismissal where possible, while protecting consumers’ rights.

Takeaway

The spike in debt collection lawsuits is a pressing consumer issue. It’s one thing to owe money; it’s quite another to be sued without sufficient notice, facing inaccurate claims, or lacking a valid defense. Consumers need to know their rights, act quickly when sued, and get legal help.

If you or someone you know has been sued by a debt collector, are facing judgment, or believe a collector has violated your rights under FDCPA, FCRA, or state law, reach out for a free consultation. Understanding your defenses might save your wages, savings, and peace of mind.