The Court of Appeals for the Sixth Circuit has affirmed a ruling in favor of a defendant in a Fair Debt Collection Practices Act case that was sued for allegedly not informing the plaintiff that the underlying debt in question was time-barred, ruling that the statute of limitations for the debt had not yet expired.
The background: The case originated when the plaintiff, who had accrued several unpaid medical bills between 2011 and 2015, discovered that these debts had been reported to the credit bureaus by a collection agency. The plaintiff disputed the debts, believing that they were no longer valid due to their age. The defendant responded with an account itemization and subsequently sent a letter threatening legal action if the debts were not paid. Believing the debts to be time-barred, the plaintiff filed a lawsuit against the collection agency, alleging that the threat of legal action violated the FDCPA by attempting to collect on debts that were no longer legally enforceable.
The ruling: The Court of Appeals affirmed the district court’s decision, ruling that the statute of limitations had not expired for the debts in question. The court explained that under Kentucky law, the statute of limitations depends on whether the underlying contract is written or oral. The court found that the contracts associated with the medical debts were written agreements, which are subject to a 15-year statute of limitations under Kentucky law.
- The court rejected the plaintiff’s argument that the agreements were oral, noting that the forms signed by the plaintiff included all essential terms, such as the parties involved, the promise to pay, and the performance to be rendered.
- Since the debts were within the 15-year statute of limitations, the court concluded that the defendant’s threat to pursue legal action did not violate the FDCPA. The appellate court affirmed the district court’s award of summary judgment in favor of the defendant, emphasizing that the collection agency’s actions were lawful under the relevant statutes.
