In response to the rising number of consumers defaulting on lawsuits related to debt collection
actions, the Delaware Court of Common Pleas recently approved an administrative directive intended to make the process more transparent for debtors, the Delaware News Journal reports.
The mandate, which is set to take effect on July 1, will require collectors to more clearly identify themselves - a practice that is intended to reduce the likelihood of consumers not recognizing the name of a company because their debts or loans were repackaged and sold to other entities. Additionally, the inclusion of specific information about how much the debtor owes will also be required under the new law. The directive will hopefully reverse the rise of defendants automatically losing a lawsuit due to failure to respond. According to the news source, the number of default judgments in North Castle County rose by 42 percent between 2009 and 2010. "That high percentage of default judgments is an indication that something is not right," Andrea L. Rocanelli, a Court of Common Pleas judge, told the media outlet Results of a CareOne survey released earlier this year found that Delaware consumers have an average debt of more than $20,000 - the highest in the nation.