Stimpson v. Midland Credit Management, Inc., No. 18-35833 (9th Cir. 2019)
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A debt collector is entitled to collect a lawful, outstanding debt even if the statute of limitations has run, so long as the debt collector does not use means that are deceptive or misleading and otherwise complies with legal requirements. The Ninth Circuit affirmed the district court's grant of summary judgment for defendant in an action under the Fair Credit Reporting Act (FCRA), alleging that a debt collector's letter was deceptive or misleading under 15 U.S.C. 1692e because it attempted to persuade him to pay time-barred debt.
The panel held that Midland's disclosure would not mislead or deceive the least sophisticated debtor into thinking that Midland could use legal means to collect the debt; Midland's letter was not deceptive or misleading for not warning about the potential for revival of the statute of limitations; the panel rejected plaintiff's argument that a letter is deceptive or misleading if a debt collector tries to persuade debtors to pay what they owe; and thus plaintiff has not identified anything false, deceptive, or misleading in Midland's letter.
Court Description: Fair Debt Collection Practices Act. Affirming the district court’s summary judgment in favor of the defendant in an action under the Fair Debt Collection Practices Act, the panel rejected plaintiff’s claim that a debt collector’s letter was deceptive or misleading under 15 U.S.C. § 1692e because it attempted to persuade him to pay a time- barred debt. The panel held that a debt collector is entitled to collect a lawful, outstanding debt even if the statute of limitations has run, so long as the debt collector does not use means that are deceptive or misleading and otherwise complies with legal requirements. The panel concluded that the letter’s statute-of-limitations disclosure would not mislead the least sophisticated debtor into thinking that the debt collector could use legal means to collect the debt, and the letter was not deceptive or misleading for not warning about the potential for revival of the statute of limitations. Further, there is nothing inherently deceptive or misleading in attempting to collect a valid, outstanding debt, even if it is unenforceable in court. STIMPSON V. MIDLAND CREDIT MANAGEMENT 3
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