The Consumer Debt Litigation Index, developed by the National Center for Access to Justice (NCAJ), evaluates how well each U.S. state and the District of Columbia protects consumers facing debt collection lawsuits. The index assesses 24 policy benchmarks, covering crucial areas such as legal representation, court fees, wage garnishment, and evidence requirements for creditors. The findings highlight widespread deficiencies in consumer protection, as no state earned a passing score. The tool underscores the need for reforms to ensure that consumers receive adequate notice of lawsuits and are not burdened with excessive fees, and serves as a resource for advocates, policymakers, and researchers to push for fairer debt collection practices.
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Key Findings:
- 30 states permit the incarceration of individuals for failing to comply with court orders to pay debts, effectively allowing debtor’s prisons.
- The highest-ranking jurisdiction, the District of Columbia, scored 58 out of 100.
- The lowest-ranking jurisdiction, Montana, scored 7 out of 100.