Researcher ORCID Identifier

0009-0007-0402-7429

Graduation Year

2025

Date of Submission

4-2025

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Second Department

Government

Reader 1

Eric Helland

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Terms of Use for work posted in Scholarship@Claremont.

Rights Information

© 2025 Kaitlyn M Seever

Abstract

This study evaluates whether California’s Fair Debt Buying Practices Act (CFDBPA), effective January 2014, improved litigation outcomes in consumer debt lawsuits. The CFDBPA sought to curb abusive practices by imposing heightened documentation requirements on debt buyers. Using a dataset of 535,766 limited-jurisdiction debt collection cases filed in Los Angeles County between 2012 and 2022, a constrained difference-in-differences event study design compares outcomes between secondary and non-secondary debt buyers before and after the law’s implementation.

The analysis finds modest changes: dismissals for secondary buyers increased slightly relative to non-secondary buyers, but default judgment rates remained high. Defendant response rates declined for secondary buyer cases over time, while pro se representation rates stayed low. Motions to set aside judgments remained rare. Average principal amounts pursued by secondary buyers fell modestly after the law but converged with non-secondary buyers by year five. Short-term volatility in writs of execution and proof of service practices was observed but diminished over time.

The findings suggest the CFDBPA created limited procedural disruptions without substantively altering litigation power dynamics. Secondary buyers adapted strategically by adjusting filing practices and case composition rather than facing widespread litigation disadvantages. These results highlight the limitations of procedural reforms enacted without complementary increases in consumer legal representation or systemic enforcement. Strengthening procedural protections alone appears insufficient to rebalance outcomes in a system where access to counsel remains heavily asymmetric.

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