Collecting time-barred debts has never been an easy task. Tracking down debtors and convincing them to pay is difficult enough. Now with the latest activity from plaintiffs’ attorneys, the Federal Tra…
Collecting Time-Barred Debt: Is it Worth the Risk?
In Brief
- Since the passing of the Fair Debt Collection Practices Act in 1977, case law and the positions of the FTC and CFPB have evolved to make collection of time-barred debt a risky proposition.
- The trend appears to be that collecting time-barred debt is almost certainly going to be an invitation to litigation, and it is doubtful whether these developments really help consumers in the end.
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