February 12, 2018 / 9:59 PM / 2 years ago

3rd Circuit revives lawsuit over collection of time-barred debt

A federal appeals court has revived a lawsuit accusing debt collector Allied Interstate of trying to get borrowers to pay on time-barred debt by offering to settle it, ruling that the word “settle” could imply that the debt was legally enforceable.

Letters sent by Allied to New Jersey borrowers with “settlement offers” for old debt could violate the U.S. Fair Debt Collection Practices, which bars the use of misleading practices in debt-collection attempts, a three-judge panel of the 3rd U.S. Circuit Court of Appeals said on Monday.

To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/2nUSl92

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