Publication Date
Summer 7-1-2015
Document Type
Article
Organizational Units
Sturm College of Law
Keywords
Due Process, consumer protection, remedies, distant forum abuse, debt collection
Abstract
For nearly two decades consumer protection laws have grown tremendously, with a corresponding expansion in the range of activities which fall within the scope of such laws. From the earliest notions of common law fraud in simple sales transactions has evolved a conglomeration of statutes, administrative rules and case law which is directed at the protection of the consumer from the point of initial solicitation or advertising to the post-sale matters of debt collection. Of particular interest in past years has been a common method of collecting allegedly overdue consumer debts which involves thecreditor, who may often be the seller as well, suing upon consumer obligations in forums far from the place of the consumer's residence or from where the consumer signed the original contract. Although this practice, often called "distant forum abuse," has been declared unfair under federal law, at least with respect to interstate debt collection' and is prohibited with respect to third-party collection agencies, there remains a largely unprotected area where astute business operators can avoid these restrictions. The primary areas of concern where consumers in many states are still without protection are intrastate debt collection suits filed by companies collecting their own debts or the debts of an affiliated company under common ownership, or by "debt servicing" companies. Moreover, there are practical limitations upon the enforcement of federal remedies, both in terms of available resources and remedial options. These limitations give rise to the necessity of a broad remedy in state courts which can be exercised by both state consumer protection officials and individual citizens.
Publication Statement
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Originally published as Alan K. Chen, Due Process as Consumer Protection: State Remedies for Distant Forum Abuse, 20 Akron L. Rev. 9 (1987)
Recommended Citation
Alan K. Chen, Due Process as Consumer Protection: State Remedies for Distant Forum Abuse, 20 Akron L. Rev. 9 (1987).