revealed, is that now, many more financially strapped consumers can be sued—over even the most paltry sums.
Debt collection agencies were previously loath to spend the time or money to pursue “low-quality, small-dollar cases” in court. But A.I.-based robo-lawyers can now cheaply and quickly generate and file huge volumes of cases at once. Defendants often don’t appear in court to respond because they don’t have the funds to hire a lawyer or simply have no idea how to proceed—or, not uncommonly, because many debt collectors “deliberately avoid notifying defendants of a legal case .” The case then ends in a default judgment, with wage garnishment as a final outcome.
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