The New York Times has published a consumer-facing look at the rise in debt collection lawsuits, and members of the industry should take note of how the story frames the litigation landscape, what protections it highlights for consumers, and the fact that the industry’s perspective made it into print.
The article leans heavily on a new Pew Charitable Trusts report. Citing research from data firm January Advisors, Pew found that collection filings, which dipped during the pandemic, have surged past prepandemic levels in seven of eight states studied, with Utah on pace to exceed its post-Great Recession peak and filings in St. Louis County nearly doubling between 2019 and 2025. The Times ties the trend to rising consumer debt loads, noting credit card balances hit $1.25 trillion in the first quarter, and to technology that lets debt buyers profitably pursue smaller-balance accounts. A Stanford law professor quoted in the piece describes courts as “choking” on collection cases.
Notably, the Times did give the industry a voice. Don Maurice, outside counsel to RMAI, told the paper that members would rather settle directly with borrowers than litigate, calling a lawsuit “a last resort.” Maurice also warned that municipal call frequency caps, including one taking effect in New York City, could reduce communication and push more accounts into court.
The article walks consumers through new state-level protections. Virginia’s law shielding at least $1,000 in bank account funds from seizure took effect July 1, with no court appearance required. Virginia and Washington also passed legislation, effective next year, requiring collectors seeking default judgments to document that the right person is being sued, that the debt is owed, and that the suit falls within the statute of limitations, with courts required to verify the filings.
The AI angle is worth watching. The Los Angeles Superior Court is partnering with Stanford to test AI-assisted review of collection claims, with early research showing a 53 percent reduction in errors and a 33 percent cut in review time. The piece also notes consumers are increasingly finding credit counseling through chatbots, with one nonprofit reporting a tripling of ChatGPT referrals in a single month.
For the industry, the takeaway is twofold: mainstream coverage is telling consumers that many collection suits deserve scrutiny, and courts and legislatures are building the infrastructure to provide it.
