American Courts Reeling Under Automated Debt Collection Lawsuits
The legal system in the US is burdened thanks to special software.
Here’s a classic example of how computers can work contrary to their objective and put more strain on the system. The New York Times reports how debt collection lawsuits have been engulfing courts, thanks mainly to automated systems that can process data and send out collection letters and lawsuits at the click of a button.
The Federal Trade Commission has recommended states to take measures so that consumers show up in courts to avoid default judgments.
More from New York Times:
Collection law firms are able to handle such large volumes of cases because computer software automates much of their work. Typically, a debt buyer sends a law firm an electronic database that contains various data about consumers, including name, home address, the outstanding balance, the date of default and whether interest is still accruing on the account. Once the data is obtained by a law firm, software like Collection-Master from a company called Commercial Legal Software can “take a file and run it through the entire legal system automatically,” including sending out collection letters, summonses and lawsuits, said Nicholas D. Arcaro, vice president for sales and marketing at the company.