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DISCLAIMER: This article is based on a complaint. The defendant has not responded to the complaint to present its side of the case. The claims mentioned are accusations and should be considered as such until and unless proven otherwise.
This is a tree-in-the-forest scenario … If a debt is not owed, can it be time-barred at the same time? A collection operation and a debt buyer are facing a class-action lawsuit in Kentucky federal court for allegedly violating the Fair Debt Collection Practices Act because they attempted to collect on a debt that was time-barred and attempted to collect on a debt that was not owed — the same debt for both claims.
The background: The plaintiff received a collection letter last September, which indicated the underlying debt in question “became due and payable” back in 2016, according to the complaint. The debt was owed to a consumer finance company that was the subject of an enforcement action by the Consumer Financial Protection Bureau back in 2023.
- The complaint notes that a lease contract in Kentucky has a four-year statute of limitations.
- This past January, four months after the letter was sent, the plaintiff retained counsel and sent a debt validation letter to the defendant.
- The enforcement action required the original creditor to close all existing leases and deem them satisfied in full. The plaintiff’s lease should have been included in that action, according to the complaint.
The claims: The plaintiff is accusing the two defendants of violating Sections 1692e(2)(A), 1692e(10), and 1692f(1) for attempting to collect on a time-barred debt and for falsely representing that the plaintiff owed a debt she did not owe.
- The plaintiff is seeking to include anyone else in Kentucky from whom the defendant attempted to collect on a time-barred debt or attempted to collect on a debt that was originated by the original creditor.
