May 15, 2018 / 9:21 PM / 6 months ago

U.S. appeals court says debt collection lawsuit too late, creates circuit split

A U.S. appeals court on Tuesday said civil lawsuits alleging violations of a major federal debt collection law must be filed within one year of the violations, creating a split of opinion among federal circuit courts that the Supreme Court could decide to resolve.

All 12 active judges on the 3rd U.S. Circuit Court of Appeals in Philadelphia rejected the decisions of two other federal appeals courts that the statute of limitations under the Fair Debt Collection Practices Act begins to run when violations are discovered, rather than when they occur.

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