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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)

mortgage

Florida’s Third DCA Reverses Course on Statute of Limitations for Mortgage Foreclosure

This article previously appeared on The Consumer Finance Litigation Blog and is republished here with permission. Florida’s Third District Court of Appeal retreated from one of its most unpopular opinions this morning. The Third DCA surprised many with its original ruling in Deutsche Bank Trust Company Americas v. Beauvais¸ 3D14-575 when it split with the Fourth District Court […]

wrong-way

CFPB Targets ARM Industry — Which Practices Should Your Company Avoid?

The CFPB intends for its consent orders to set industry-wide precedents. In March 2016, CFPB Director Richard Cordray referred to consent orders as a guide “to all participants in the marketplace to avoid similar violations and make an immediate effort to correct any such improper practices,” telling the Consumer Bankers Association that any company not following the precedents set by the CFPB’s consent orders is committing “compliance malpractice.”

Rhode Island

Rhode Island ‘Expired Debt Act’ More Than Name Implies

On Jan. 7, the Expired Debt Act (EDA) was introduced in the Rhode Island House of Representatives and referred to the House Committee on Judiciary. Rhode Island has had its own Fair Debt Collection Practices Act (RIFDCPA) that is, for the most part, identical to its federal counterpart. The EDA, however, introduces new definitions and restrictions related to debt collection.

hourglass, time, timing, deadline

Bankruptcy Code Precludes FDCPA Claim for Filing POC on Time-Barred Debt, Fla. District Court Holds

The U.S. District Court for the Middle District of Florida recently dismissed allegations that a debt buyer violated the federal Fair Debt Collection Practices Act by filing a proof of claim on time-barred debt, holding that such claims are precluded by the Bankruptcy Code, and that the FDCPA does not provide a private right of action against debt collectors who file time-barred proofs of claim in bankruptcy court.

Inequality

Three Reasons Your Agency Needs to Be Focused on Disparate Impact

The Consumer Financial Protection Bureau (CFPB) has been talking about disparate impact for years and the agency’s favorite controversial methodology – finding evidence of discriminatory practices in data and outcomes rather than intent – has been plenty of trouble for bankers. But the collections industry has not had to deal head-on with the CFPB’s methodology. Does that mean collections firms have nothing to worry about?

New-York-City-Statue-of-Liberty

NYC Quietly Publishes Guidance That Helps to Reconcile Its Debt Collection Rules with Those of New York State

In response to many inquiries regarding its out-of-statute requirements, the New York City Department of Consumer Affairs (NYC) issued official guidance on July 31, 2015. The requirements have caused confusion because of their apparent conflict with those issued by the New York State Department of Financial Services (NYDFS).