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Fourth Circuit Weights in on the Time Barred Proof of Claim Debate

Consumer Financial Services Law

Secondly, the court’s decision does not address the contents of the proof of claim or the conduct of the debt collector. Instead, the Fourth Circuit’s opinion appears to focus solely on whether or not the statute of limitations extinguished the debt. Keys to the Decision. The opinion is important for a number of reasons. .

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Supreme Court Reverses Bankruptcy Proof of Claim Case

Consumer Financial Services Law

Johnson in the Lower Courts Aleida Johnson filed her Chapter 13 bankruptcy petition in 2014. Midland Funding, LLC, a debt buyer, filed a proof of claim which disclosed on its face that the claim was barred by the applicable statute of limitations, listing the date of last transaction as May 2003.

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Sixth Circuit Decision Highlights the Risk of Initiating Collection Remedies During the FDCPA’s Validation Period

BN Lawyers

Section 1692g(a) of the FDCPA mandates the sending of a “validation” notice within five days of a debt collector’s initial communication with a consumer. A debt collector is free to collect during the thirty-day period as long as it does not overshadow or contradict the consumer’s thirty-day rights. In Scott v.