Crawford v. LVNV Funding, LLC

Summarized by Jeffrey Snyder , Bilzin Sumberg Baena Price & Axelrod, LLP
11 years 7 months ago

Citation:

--- F.3d ----, Case No. 13-12389 (11th Cir. Jul. 10, 2014)

Tag(s):

Ruling:

Filing of proofs of claim by debt collectors in respect of debts deemed unenforceable under state statutes of limitations violates Fair Debt Collection Practices Act. Under "least-sophisticated consumer" standard adopted by Eleventh Circuit used to determine whether conduct is deceptive, misleading, unconscionable, or unfair, filing of lawsuit or threatening suit in respect of stale claim has uniformly been held to violate Fair Debt Collection Practices Act. Filing of proof of claim is likewise a violation because it constitutes an effort to enforce in court a claim known to be time-barred.

Procedural context:

Appeal from district court order affirming bankruptcy court judgment against debtor dismissing counterclaim pursuant to Fair Debt Collection Practices Act brought by debtor via adversary proceeding in response to proof of claim filed by debt collector in respect of time-barred debt.

Facts:

LVNV Funding, a debt-collector, purchased a charged off debt owed to Heilig-Meyers furniture company. Debtor filed chapter 13 case nearly 4 years after statute of limitations had run on the debt. LVNV nevertheless filed a proof of claim alleging that LVNV filed stale claims as a routine business practice in violation of the prohibition under Fair Debt Collection Practices Act (15 U.S.C. s 1692) of false, deceptive, or unfair debt-collection practices. Neither debtor nor trustee objected to proof of claim and it was deemed allowed and payments were made pursuant to chapter 13 plan until, four years later, debtor objected to enforceability of claim.

Judge(s):

HULL, Circuit Judge, WALTER, District Judge (W.D. La.), and GOLDBERG, U.S Court of International Trade Judge

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