In order to better understand the work that civil legal aid programs are doing to serve some of the nation’s consumers, the National Consumer Law Center (NCLC) developed this survey to gather data about what kind of representation organizations provided to clients who are being contacted or sued by debt collectors, debt buyers, or creditors. Sixty-four civil legal aid organizations completed the comprehensive survey.
Consumers
Rubber Stamp Justice: US Courts, Debt Buying Corporations, and the Poor
Incorporating over 100 interviews as well as relevant literature and empirical data, this Human Rights Watch article develops a comprehensive assessment of practices that fail to serve equal access to justice in debt buying cases. Additionally, it describes potential solutions to alleviate inequality in the courts through reform legislation and increased funding for legal aid programs focused on serving low-income clients.
Identity Theft: A Low–Income Issue
In this article, Dranoff identifies how identity theft is particularly harmful for low-income individuals. Because identify theft often brings financial loss, those without a financial cushion are often impacted more negatively.
Debts, Defaults and Details: Exploring the Impact of Debt Collection Litigation on Consumers and Courts
This study investigates the protections in place for consumers when confronted with debt buyers. Spector found that when customers made even minimal effort to protect themselves, it helped considerably. Having an attorney increases the likelihood of dismissal, but less than 10 percent of defendants retained counsel.
Debt Relief and Debtor Outcomes: Measuring the Effects of Consumer Bankruptcy Protection
Researchers at the National Bureau of Economic Research analyzed 500,000 bankruptcy filings. They find that chapter 13 protection increases earnings, decreases mortality, and decreases foreclosure rates. When individuals are no longer followed by their debt, they experience several positive externalities.
