PROVO, Utah, Sept. 15, 2020 /PRNewswire/ -- SoloSuit, a legal tech startup that empowers individuals to respond to a debt collection lawsuit, today announced it is a semi-finalist at TechCrunch Virtual Disrupt 2020. During the Battlefield competition taking place through September 18, SoloSuit will detail how its newly expanded online tools are now available in all 50 states to help individuals who cannot afford professional legal services respond to a debt collection lawsuit.
The U.S. debt market is big business with debt collection agencies buying and selling debt for pennies on the dollar. Many of these agencies use the court system to collect consumer debt, garnish wages and even seize bank accounts. Research by Pew on debt collection lawsuits from 2010 to 2019 has shown that less than 10% of defendants have legal counsel compared to nearly all plaintiffs. Every year, an estimated 10 million Americans are sued for debts according to the Consumer Financial Protection Bureau, but an overwhelming 90% of them lose by default because they can't figure out how to respond. An individual must respond to a debt collection lawsuit in writing within 14 to 30 days of receiving the complaint, depending on state and court jurisdiction, but this process can be confusing and difficult to navigate.
Available for free at www.solosuit.com, SoloSuit's automated software guides the defendant to safely and accurately respond to a debt collection complaint by following simple online prompts. The finished answers are then available to download and print for submission to the courts. SoloSuit has found that many people fail to respond to a debt collection lawsuit because they do not have access to a printer or a post office. In response, SoloSuit's freemium business model now includes paid options to have a response filed on your behalf, or to have a professional debt defense attorney review your response as well.
"SoloSuit is closing the justice gap. People need our help to protect them from predatory debt sharks coming after them for inflated debts," said George Simons, founder and CEO of SoloSuit. "SoloSuit is designed to serve the underserved, and we are excited to have the opportunity during TechCrunch Startup Battlefield to demonstrate how our online resource is making the law more accessible to a greater number of people."
Simons adds that 52% of all debt collection actions in the United States include medical expenses and warns of a likelihood of increased debt collection lawsuits as a result of COVID-19. "During the 2008 financial crisis and the subsequent three years of recession, the U.S. saw a 40% increase in debt collection lawsuits. Indicators point to an uptick in debt collection lawsuits resulting from pandemic-related financial struggles. SoloSuit is here to help make it a little easier for vulnerable defendants to plead their case."
SoloSuit is presenting to multiple groups of VCs and tech leaders this week during the Disrupt Startup Battlefield Competition. Startup Battlefield is one of the world's most renowned startup competitions, having launched companies such as Dropbox, Cloudflare and Fitbit.
Launched in 2018, SoloSuit is a Provo, Utah-based legal tech startup that provides debt collection defendants with an online resource to prepare a response to a debt collection lawsuit and provide filing instructions. SoloSuit is backed in part by an initial $100,000 investment from the Kleiner Perkins Fellows program. The software used by SoloSuit was initially developed by LawX, the legal design lab at BYU Law School. To learn more about how SoloSuit is helping to close the justice gap and visit www.solosuit.com.