Reforming Our Small Claims Courts

People often imagine Small Claims courts as places where neighbors settle disputes about fences, kitchen renovation jobs, etc. This imaginary court is in the middle of Townsville, USA. Norman Rockwell presides, and you stop at the local diner after your case is resolved.

But that view is often extremely inaccurate.

Instead, as much as 85 percent of cases in many courts now consist of private companies suing to collect on consumer debts.

The suing companies are often nationwide debt buyers, who pick up defaulted loans for pennies on the dollar.

The companies expect that the defendants won’t show up for court – because they can’t get off work, think the notice of the lawsuit is a scam, or never learn about the lawsuit in the first place.

When that happens, the debt collector wins and can get a “default judgment” against the defendant.

Default judgments empower the buyer to collect — even if the underlying debt might not have been enforceable.

We Need Reforms So That These Courts Really Help the American People, Including:

Evening and Weekend Court

Scheduling small claims hearings during off-work hours, so average consumers do not lose wages just to attend their trial.

Plain-Language Documents

Replace complex legal jargon with simple, accessible, multi-language forms and provide step-by-step guides for laypeople.

Ban or Restrict Lawyers

Some jurisdictions ban attorneys from small claims court entirely, forcing both sides to argue their own facts.

Provide ‘Pro Se’ Navigators and Legal Coaches

Courts should provide free or low-cost legal navigators—trained paralegals or volunteers who can help consumers correctly fill out forms, understand court etiquette, and organize their evidence without providing official legal counsel.

Asset Seizure Assistance

If the business loses and owes the consumer, courts must take a more active role in seizing funds from business accounts, or placing liens on business properties.