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Posts published in April 2011

Collecting Time Barred Debt is not a Per Se Violation of the FDCPA Third Circuit Holds

A debt collector who attempted to collect a debt barred by a New Jersey statute of limitation did not violate the FDCPA by simply demanding payment of the debt, as held by the Third Circuit’s decision in Huertas v. Galaxy Asset Management. The court noted that New Jersey’s statute of limitation was procedural and did not extinguish the debt only the means by which it can be enforced.  Thus, the court wrote, “the FDCPA permits a debt collector to seek voluntary repayment of the time-barred debt so long as the debt collector does not initiate or threaten legal action in…