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Debt Statute of Limitations

The debt statute of limitations is the legal time limit a party has to collect a debt through the court system. After that time a creditor or third party, such as a debt collection law firm, may not sue to enforce the credit agreement. Collecting using traditional methods such as calling or lettering is still allowed. The statute of limitations varies from state to state and by type of debt, and is typically between three and 10 years (see map below)

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Debt Industry Responds to New York’s New Rules for Collectors, Buyers

Now that the industry has had the chance to take a deeper dive into the details of the New York Department of Financial Services’ proposed regulations for debt collection by third-party debt collectors and debt buyers, experts and organizations are submitting their feedback on how to further improve the regulations. Specific questions remain about the correct language to use in consumer notices, and how the rules may impact creditors.

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Middle District of Florida Clarifies Application of FDCPA and FCCPA Statutes of Limitation

A judge recently held that inaction cannot form the basis of a continuing violations theory under the FDCPA or Florida collection law. The holding constitutes an important development in the debt collection realm and sets a good precedent for analysis of the application of statutes of limitations to inaction or omissions on the part of debt collectors.

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ACA Submits Amicus Brief in Debt Collector’s Statute of Limitations Case

ACA International recently filed an amicus curiae brief with the Sixth Circuit Court of Appeals in the case of Buchanan v Northland Group Inc. At issue is the district court’s decision that a debt collector does not mislead a consumer and therefore does not violate the Fair Debt Collection Practices Act by making a settlement offer to collect a debt without disclosing that the statute of limitations for filing a collection lawsuit has expired.