Debt Collectors Accused of Misleading Consumer Regarding Time-Barred Debt

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Commonwealth Financial Systems, Inc. and Pendrick Capital Partners LLC have been named as defendants in a proposed class action claiming the companies violated the Fair Debt Collection Practices Act (FDCPA) when they implied they could sue a consumer for her time-barred debt.

According to the lawsuit, Pendrick Capital Partners contracted with Commonwealth to collect a debt owed by the plaintiff. In September 2017, the case alleges, the woman received a letter from the defendants that stated, in part:

“The law limits how long you can be sued on a debt. Because of the age of your debt, Pendrick Capital Partners will not sue you for it.”

The complaint argues the defendants unlawfully implied they have chosen not to sue the plaintiff when, in fact, no entity could sue her for the debt, as the statute of limitations on the obligation has expired. Further, the suit argues the letter was deceptive in that it failed to disclose that any payment made toward the debt would restart the statute of limitations.