Georgia Debt Collection Investigation Finds 74% of Judgments Entered by Default
A new investigation into debt collection lawsuits in Georgia found that nearly three-quarters of cases resulting in judgments in a sample from Gwinnett County ended in default judgments, highlighting a pattern of limited consumer participation in debt litigation that national researchers have documented for years.
According to a Nov. 4 investigation by WSB-TV Channel 2 Action News, more than 17,000 debt collection lawsuits were filed in Gwinnett County during the one-year period examined. The news organization reviewed a random sample of 1,000 cases and found that 74% of cases resulting in judgments ended in default. In 97% of those default cases, defendants had filed no answer.
The findings raise questions about consumer participation, debt documentation and the procedures courts use to resolve collection lawsuits when defendants do not respond.
Georgia Findings Reflect National Debt Litigation Trends
The Georgia results are consistent with broader research into debt collection litigation.
According to research published by The Pew Charitable Trusts, an estimated 4.7 million debt collection lawsuits were filed nationwide in 2022. Subsequent research found that filings increased significantly in 2023 and 2024, with some jurisdictions exceeding pre-pandemic levels.
Pew has also found that default judgments account for more than 70% of debt collection case resolutions in many jurisdictions. In some studies, default judgment rates have reached 82%.
Legal representation remains another significant factor. Pew’s research on debt collection litigation found that fewer than 10% of defendants had attorneys, compared with nearly all plaintiffs.
These findings provide context for the Georgia investigation, although differences in sampling and case outcomes mean the percentages are not directly comparable.
The Pew Charitable Trusts+2
Georgia Court Procedures Allow Judgments Without a Defendant’s Response
Under Georgia magistrate court procedures, defendants generally have 30 days after service to answer a civil lawsuit. An additional 15-day period allows defendants to open a default by filing an answer and paying applicable court costs.
According to the Gwinnett County Magistrate Court’s guidance, courts may enter default judgments when defendants fail to respond, although additional evidence or a hearing may be required depending on the nature of the damages.
Once a judgment is obtained, creditors may pursue legally available collection remedies, including wage garnishment or bank account garnishment.
The WSB-TV investigation documented cases in which consumers faced garnishment after default judgments had already been entered. It also examined debt purchase agreements involving portfolios of charged-off accounts, including contractual language addressing potential inaccuracies or enforceability issues.
