" Although critics question the legality of TRAPs, a legal analysis published last year found that courts generally uphold the agreements in challenges brought under anti-kickback provisions of the Fair Labor Standards Act, the law establishing a federal minimum wage. However, the author of the study, Loyola Marymount associate law professor Jonathan F. Harris, said another type of legal challenge might prove more successful: courts could refuse to enforce TRAP contract language under the so-called unconscionability doctrine, a legal principle that allows judges to void agreements containing unreasonable terms dictated by a party “with superior bargaining power.” In 2000, the study noted, a federal judge in Manhattan nullified one employment agreement in the financial services industry, ruling that the language of the contract “approaches indentured servitude.” "
Additionally, it does not cost tend of thousands of dollars to have a law firm draft demand letters for debt. Even if the debt is contestable, theoretically, it remains a huge problem and not something that can be ignored.