Automated Debt Collection Lawsuits

After the initiation of automatic debt collection software, collection law firms are piling thousand law suits on the court room. Therefore, rates of filing law suits are increasing leaps and bounds.

Cohen & Slamowitz, at Woodbury, N.Y, is a decade old collection law firm that has been reported to file 80,000 lawsuits over the last year with only 14 lawyers on staff, each dealing 5,700 cases. This may look incredible but it is being possible only for using software called Collection Master manufactured by a company named Commercial Legal Software. Richard Rubin, a lawyer from New Mexico termed the procedure as ‘factory approach to practicing law’.

Usually a collection agency sends extensive database of the debt stricken consumers to the law firm. Then the firm employs the software to automatically run over the data and operates the entire legal system. The system replaces all the paper flow of traditional collection process and covers everything from sending out collection letters, summons to lawsuits via email. The information that a collection agency sends to the law firm is stored in an electronic data base. It contains the name of the consumer, his address, his outstanding balance on credit card and interest rate if any, accruing on his account.

Another type of debt collection software that law firms use is web based software that does not require installing any additional hardware or software system. Casetrackerlaw is one such web based solution that hosts online application and performs all the functions in a customized way. It helps a law firm manage debtor’s payment, collection fees, client fees and filing fees.

However, due to handling huge data, errors or questionable information are also getting processed into the system. So the Fair Trading Commission is now urging the state authority to make collection rules much more stringent. If any debtor challenges the amount of his debt, the collection agency must show substantial proof against him to validate their claim. This is now a growing debate how the debt collection law should function and to what extent.

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