Debt Collection Suits Have Risen Sharply. There’s Help for Consumers Being Sued.

As debt collection lawsuits clog state and local courts, efforts are underway to help strapped consumers using new legal protections and, in some cases, help from artificial intelligence.

Collection suits may result from old debts, but they add to the stress people are feeling today from high gas and grocery prices, said Lester Bird, senior manager of courts and communities at the Pew Charitable Trusts and a co-author of a report this month on collection lawsuits.

“More cases means more financial distress for people now, when people are feeling more pinched,” Mr. Bird said.

Debt collection suits are filed by businesses or debt collectors when borrowers fail to pay a credit card bill, a medical bill or other debt. A debt judgment can have serious consequences for borrowers, like having money withheld from their paycheck or taken from a bank account.

Article source: https://www.nytimes.com/2026/07/24/business/credit-card-debt-collection-lawsuits.html