High Court Ruling May Curb Debt Collection Lawsuits

Law360, New York (February 26, 2013, 7:02 PM EST) -- The U.S. Supreme Court on Tuesday said courts can force borrowers who lose debt collection cases to pay the defendant's litigation costs, in a ruling experts say will likely rein in a surge of consumer actions filed under the Fair Debt Collection Practices Act.

The high court ruling in Marx v. General Revenue Corp. changes the calculus of debtors, and by extension plaintiffs attorneys, who seek to bring a suit against debt collection firms by putting them at risk of paying out costs that could dwarf...
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