Dist. Courts did not err in granting defendants-debt collectors’ motions to dismiss plaintiff-debtors’ actions alleging that defendants’ actions in filing stale debts in their Chapter 13 bankruptcy proceedings violated sections 1692e and 1692f of Fair Debt Collective Practices Act (FDCPA). Record showed that plaintiffs successfully had said debts disallowed, and that said debts otherwise contained accurate information as to origin of debt and dates of last payment and last transaction. As such, Dist. Courts could properly conclude that act of filing stale claim in Chapter 13 bankruptcy proceeding did not violate FDCPA since instant proofs of claims were not false or misleading. Ct. rejected plaintiffs’ argument that filing stale debts falsely cloaks underlying obligation with air of legitimacy, or that filing of stale debt was deceptive practice because debtors at times fail to object to said claims. Result would be different had defendants filed stale debts that contained inaccurate information about said debts. (Dissent filed.)
Federal 7th Circuit Court
Civil Court
Fair Debt Collection Practices Act