While the U.S, Supreme Court dealt a win to small businesses in Impression Products, Inc. v. Lexmark International, Inc., it was not as nice to consumers in Midland Funding, LLC v. Johnson. In Midland Funding, LLC the Supreme Court concluded that a collection agency was
not liable to a debtor for a false, deceptive, misleading, unfair or unconscionable debt-collection practice within the meaning of the Fair Debt Collection Practices Act (FDCPA) when it files a proof of claim (here, in a Chapter 13 bankruptcy proceeding) that is obviously time barred.
Based on this decision there is a very good chance debtors will be hounded by debt collectors for debts barred by the applicable statute of limitations.
Before you decide to deal with a debt collector it is now incumbent on you to be sure the debt is still enforceable. If in doubt, take the time to discuss it with your legal counsel.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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