Lawyers to Business: We're Special

Making more clear than ever where they stand in the debate on civil justice reform, lawsuits and consumer rights, the NJ State Bar Association today supported legislation that would allow delinquent debtors to sue creditors and debt collectors for "unfair" and "unconscionable" debt collection practices - as long as the creditor is not a lawyer.

That's right - lawyers want themselves carved out of the legislation; again.

A-1700, the "New Jersey Fair Debt Collection Practices Act" seeks to mimic federal law in New Jersey and "eliminate abusive practices in the collection of consumer debt."  It is vaguely worded (one can violate it for "unfair debt collection practices," for example) and would allow the awarding of punitive damages if the court deems them warranted.  

The bill is flawed to begin with, but this particular piece of legislation includes creditors, not just debt collectors.  That means that major corporations, small businesses, professionals and contractors can all be sued and fined under this bill for "unfair" debt collections.  Think about that. Businesses risk a lawsuit by collecting monies they're owed, but creditors with a law degree would be exempt.  Where's the fairness here?

The bill is scary enough that lawyers want a carve-out for themselves, but not for anyone else.

If you think this bill won't create lawsuit abuse, think first about why lawyers would support it without them in it...and then read this article in the Dallas Observer about debtors who game the system to sue debt collectors rather than repay their debts.

But don't worry, the lawyers will get their money.