Owens v. LVNV Funding, LLC, No. 15-2044 (7th Cir. 2016)Annotate this Case
In each of three cases, a debtor filed for Chapter 13 bankruptcy, represented by counsel. During the bankruptcy proceedings, a debt collector submitted a proof of claim for a “stale” debt, for which the statute of limitations had expired. As required by Bankruptcy Rule 3001, the proof of claim filed by the debt collector accurately noted the origin of the debt, the date of the last payment, and the date of the last transaction. Each debtor objected to the claim; each was disallowed and eventually discharged. Each debtor brought a separate suit against the debt collector, alleging that the act of filing a proof of claim on a time‐barred debt constituted a false, deceptive, misleading, unfair, or unconscionable means of collecting a debt in violation of the Fair Debt Collection Practices Act, 15 U.S.C. 1692. The Seventh Circuit affirmed dismissal of the cases. The debt collectors’ conduct was not deceptive or misleading. The information contained in the proof of claim was not misleading, but set forth accurate and complete information about the status of the debts.