The September debt collections data is in, and in an entirely unsurprising development, FDCPA and TCPA lawsuits are on the rise.
The biggest takeaway from this data is the continued need to address, update, and reform the outdated law that is the TCPA.
Patrick Lunsford of InsideArm breaks down some of the highlights from Septembers' lawsuit data and information year-to-date:
Through the first three quarters of 2014, FDCPA lawsuits are down 12 percent compared to this time last year. If the trend holds, it will mark the third-straight year of annual declines in FDCPA lawsuits with the decreases accelerating each year.
TCPA lawsuit, meanwhile, are on pace to continue their meteoric rise. Through the end of Q3 2014, the cases are up nearly 30 percent from 2013. In 2013, TCPA suits were up a staggering 70 percent from 2012.
The fluidity and uncertainty that surrounds TCPA make it an easier target for consumer lawsuits. There is no consistency yet in how TCPA is interpreted from one case to the next, and until there is, a consumer has a decent chance of winning such a case.
TCPA needs to be modernized so that there is less uncertainty about how it will be interpreted with issues such as prior consent and consumers providing cell phone numbers as home numbers. Until those issues are clearer, these lawsuits will continue to rise.