In an opinion issued July 10 in Crawford v. LVNV Funding, LLC, the 11th Circuit Court of Appeals held that a debt collector who files a "proof of claim" in a bankruptcy on a debt that has passed its statute of limitations has violated the Fair Debt Collection Practices Act.
The Court also points out that suing on a debt past its statute of limitations is "uniformly" a violation of the FDCPA. Per the Court's reasoning:
the FDCPA outlaws “stale suits to collect consumer debts” as unfair because (1) “few unsophisticated consumers would be aware that a statute of limitations could be used to defend against lawsuits based on stale debts” and would therefore “unwittingly acquiesce to such lawsuits”; (2) “the passage of time . . . dulls the consumer’s memory of the circumstances and validity of the debt”; and (3) the delay in suing after the limitations period “heightens the probability that [the debtor] will no longer have personal records” about the debt.
The Court found no reason not to apply this same line of thought to debts asserted in bankruptcies as well. The opinion is solidly-reasoned, and I wouldn't be surprised to see other Circuits follow through, if it comes up again.
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