Monday, May 15, 2017

FYI: SCOTUS Holds FDCPA Not Violated By Proof of Claim on Time-Barred Debt

In a 5-3 decision handed down earlier today, the Supreme Court of the United States held that the federal Fair Debt Collection Practices Act (FDCPA) is not violated when a debt collector files a proof of claim for a debt subject to the bar of an expired limitations period.


The Supreme Court:


•           held that the filing of such a proof of claim is not false, misleading, deceptive or unconscionable in violation of sections 1692e or 1692f of the FDCPA;

•           found that claims under the Bankruptcy Code need not be capable of being "enforceable" in a civil lawsuit; and,

•           held that the Bankruptcy Code does not preclude application of the FDCPA to bankruptcy litigation.


A copy of the opinion is available at:  Link to Opinion


The defendant debt buyer sought review by the Supreme Court of an adverse decision it had received from the Eleventh Circuit Court of Appeals.


Many cases were stayed across the country (including cases before the Third and Fifth Circuit Courts of Appeals) awaiting today's decision. This decision should resolve many of them.




Ralph T. Wutscher
Maurice Wutscher LLP
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