How often do debt collectors follow through on lawsuits?

MoneyWatch: Managing Your Money How often do debt collectors follow through on lawsuits? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications. Read Full Bio Angelica Leicht April 9, 2026 / 12:01 PM EDT / CBS News Add CBS News on Google A lawsuit threat from a debt collector may seem like a scare tactic, but it is not something to dismiss outright.  Getty Images/iStockphoto When debt collection letters start arriving with phrases like "court action pending" or "final notice," many borrowers assume it's simply a scare tactic with legal-sounding language designed to pressure payment — and that they'll never be expected to set foot in a courtroom. That assumption is understandable. Debt collection has a well-documented reputation for aggressive posturing, after all, and the Fair Debt Collection Practices Act exists precisely because debt collectors have historically pushed boundaries. But mistaking a debt lawsuit threat for a bluff can be a costly mistake, especially in this landscape. Right now, credit card debt is sitting at its latest record high, as is household debt nationwide, and delinquency rates are rising as borrowers continue to struggle under the weight of persistent inflation, economic challenges and compounding interest charges. Against that backdrop, debt collectors have more reason than ever to pursue recovery through every available channel, including the courts. The volume of debt in default has grown, and so has the ma...