Consumer Sues Pendrick Capital Partners, Debt Recovery Solutions Over Allegedly Misleading Letter

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A proposed class action filed in Florida federal court claims that Pendrick Capital Partners, LLC and Debt Recovery Solutions, LLC misled a consumer with regard to the possible revival of her time-barred debt.

The case focuses on an April 2018 letter sent by Debt Recovery Solutions on behalf of Pendrick Capital Partners that stated, in part:

“The law limits how long you can be sued on a debt. Because of the age of your debt, the current creditor cannot sue you for it. Should you choose to make a payment for less that [sic] the discount offer it may be considered a partial payment and may re-start the statute of limitations.”

By stating that the plaintiff’s current creditor couldn’t sue her, the suit argues, the letter falsely implied that future creditors may be able to take legal action over the debt. Further, the complaint claims the defendants misleadingly threatened that partial payment may restart the debt’s statute of limitations when, under Florida law, a time-barred debt can only be revived with a written and signed agreement. The case notes that the letter offered the plaintiff options to pay by phone and on the internet, neither of which would change the legal status of the debt.