The CFPB should issue a rule confirming that implying that collection is possible on a time-barred debt (including by filing suit) is forbidden by the FDCPA, in order to remove any doubt about what the law is.
Welcome to RegulationRoom, josephusmyer. It is already illegal to file suit on a debt the collector knows or should know is time-barred, but many consumers do not know what their rights are. Should the CFPB require collectors to say when a debt is time-barred and that the collector cannot sue to recover on it?
They can't be sued on in court and communications should reflect that. I have found that persons who buy old debts are not competent and rely on software and letter services to fulfill their collection obligations. Perhaps it is time to return to licensing of collectors.
I have often wondered why many times a Plaintiff/attorney may handle the hearings telephonically but the same is not available to the Defendant/debtor. This does not appear just. I suggest that most Defendant's choose not to appear because of the loss of wages or choose not to show at at all because they are intimidated by counsel. If given the opportunity to appear telephonically I believe that more cases will be heard.
josephusmyer
1
The CFPB should issue a rule confirming that implying that collection is possible on a time-barred debt (including by filing suit) is forbidden by the FDCPA, in order to remove any doubt about what the law is.
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Moderator
2
Welcome to RegulationRoom, josephusmyer. It is already illegal to file suit on a debt the collector knows or should know is time-barred, but many consumers do not know what their rights are. Should the CFPB require collectors to say when a debt is time-barred and that the collector cannot sue to recover on it?
View this comment in the discussion thread
josephusmyer
3
I'm aware of that, but I don't think many appellate courts have considered the issue. To confirm that it's the law, it should be included in a rule.
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rb
4
They can't be sued on in court and communications should reflect that. I have found that persons who buy old debts are not competent and rely on software and letter services to fulfill their collection obligations. Perhaps it is time to return to licensing of collectors.
View this comment in the discussion thread
U.S. Marine
5
I have often wondered why many times a Plaintiff/attorney may handle the hearings telephonically but the same is not available to the Defendant/debtor. This does not appear just. I suggest that most Defendant's choose not to appear because of the loss of wages or choose not to show at at all because they are intimidated by counsel. If given the opportunity to appear telephonically I believe that more cases will be heard.
View this comment in the discussion thread
CG
6
IF a bank is trying to pursue something 20 years later, sounds like a statute of limitations violation.
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