Consumer Debt

U.S. Debt collection cases hit 4.7 million in 2022, with filings up 120% since 2019 in some areas, driven by debt buyers like LVNV Funding whose cases rose 350% over the same period. The top 10 debt collectors now dominate court dockets, accounting for 80% of cases in Connecticut and nearly half in Indiana. Most involve debts under $3,000 from credit cards, medical bills, and utilities, with defendants often failing to appear and facing default judgments lasting 10+ years. Courts have become profit centers for debt buyers who purchase portfolios cheaply and rely on judicial enforcement, not genuine collection efforts.