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According to a study by the National Center for State Courts, prevailing
plaintiffs are only able to collect a judgment in 25 to 50 percent of
uncontested cases. Even in contested cases, over 25 percent of prevailing
plaintiffs are unable to collect. Too often, small claims litigants have
defeat snatched from the jaws of victory when a court rules in their favor
yet leaves them powerless to enforce that judgment. HALT urges states to
add collection fees to the judgment when the losing party does not pay
within thirty days, which will ensure more frequent collection of
judgments in two ways. First, judgment debtors will be encouraged to pay
promptly by the threat of being responsible for collection fees in
addition to the amount of the judgment and the knowledge that the more
they try to hide from collectors, the greater those fees will become.
Second, prevailing plaintiffs will find it easier to hire an attorney or
collection agency to take on their collection matter sinceeven for jobs
not large enough to merit a contingency feethe attorney or collection
agency, if successful, will be assured of sufficient payment for their
service.
To allow consumers to resolve their disputes in small claims courts
without providing them a means to collect judgments if they prevail
provides only an illusion of justice. Making the collection process more
robust makes the small claims system a better route to justice for the
average American.
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