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Debt Collections & Default Judgments: Consumer Protection Could Remain Amped Up

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Millions of US citizens were struck by surprise in 2020 as a worldwide viral pandemic caused mass unemployment, and completely valid panic over health, the safety of family and loved ones, and finances too. With so many consumers already living paycheck to paycheck and trying to deal with debt from 2019 and before (long before, in plenty of cases), the pressing issues suddenly revolved solely around rent or mortgage payments, being able to somehow afford groceries and prescriptions, and surviving completely uncharted territory in terms of a potentially fatal virus and all the associated restrictions.

Student loans were put on hold through September of 2021, eviction moratoriums were set, and most debt collectors suddenly went silent. And while vaccines are becoming prevalent and life may be returning to normal in limited capacity so far, that doesn’t mean that Americans are able to recover with the snap of a finger. Many are behind on payments for their homes and cars, and must re-negotiate with creditors to get back on track. Medical bills have piled up for millions, bringing forth the question of whether to file for bankruptcy. Credit card bills have also become a problem for those who were forced to use run their credit up to the max in lieu of no income.

Businesses may be re-opening, schools may be back in session, but recovering financially could take an extended amount of time. States like California put temporary protection in place, but a number of consumer advocates want to see protections regarding debt collections and evictions to become more permanent. Some of these measures would have helped the American people years ago, but as desperate times call for desperate measures, it is hoped that some of them will remain for the future.

“I hate that we can only get better consumer protections after there’s been some kind of a crisis, like almost destroying the economy, or a pandemic, for example,” said Ed Mierzwinski, a senior director at the national advocacy group U.S. PIRG. “But we have found in the past that is when change happens.”

New protection laws could go into effect in nearly half of the US, according to recent news.

“We’re having conversations, in Maryland and in other places, about the fact we can’t go back to ‘normal,’” said Marceline White, the executive director of the Maryland Consumer Rights Coalition. “‘Normal’ clearly wasn’t working for many, many Maryland consumers and their families … so we need to do something different.”

If you are being sued, contact an attorney from Fitzgerald & Campbell, APLC as soon as possible to avoid the possibility of having a default judgment granted against you, which could result in the following: wage garnishing, levying of property, or freezing of checking accounts.

Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at info@debtorprotectors.com.

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