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CFPB and FTC Want Debt Collectors to Tell You When They Can’t Sue


On August 14, 2013, the CFPB, jointly with the FTC, filed an amicus brief in Delgado v. Capital Management Services, LP, et al., a case on appeal to the Seventh Circuit. The brief urges the Seventh Circuit to affirm the district court’s refusal to dismiss a class action complaint alleging that a debt collector’s letter offering a settlement of the plaintiff’s credit card debt violated the Fair Debt Collection Practices Act (FDCPA) because it did not disclose that the debt was time-barred.

Even though the letter did not threaten litigation, the plaintiff claimed that the letter nevertheless violated the FDCPA’s prohibition of a debt collector’s use of “any false, deceptive, or misleading representation or means in connection with the collection of any debt.” According to the plaintiff, the collector’s failure to disclose that the debt was time-barred, together with setting a 45-day deadline for paying the settlement amount, amounted to a misleading representation that the debt could be legally enforced. – Source

Do you think debt collection companies should inform consumers when the debt can’t be collected by suit or is outside the statute of limitations?

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