More and more Georgians are being sued for debt.
Major corporations–some even traded on the New York Stock Exchange–buy bad debt from a company or credit card issuer for pennies. The companies will then sue in local courts for the full amount–and then some.
And these debt collectors’ win rate is staggering, but it’s rarely because of the legal strength of their lawsuit.
The Pew Charitable Trusts just published a report looking at the effect this practice has on local courts.
WABE’s Jim Burress spoke to Erika Rickard, a project director for the Pew Charitable Trusts, over the telephone.
Burress began by asking her how did the report came together?
Rickard says they came upon the most common civil court cases, debt collection.
“Even before the pandemic, debit collection lawsuits were flooding state and local courts. It’s become the most common type of civil court case, across the country,” says Rickard.