Debt Collectors Accused of Misleading Consumers Regarding Time-Barred Debts

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National Enterprise Systems, Inc. and Main Street Acquisition Corp. have been named as defendants in a proposed class action lawsuit filed by a consumer who claims the debt collectors violated the Fair Debt Collection Practices Act (FDCPA) and New York state law. The plaintiff says she received a collection letter from the defendants regarding a time-barred debt for which the statute of limitations had expired. The letter allegedly failed to include required disclosures informing the plaintiff of the following:

• that the defendants believed the statute of limitations was expired;
• that the defendants could not sue the plaintiff over the debt;
• that the plaintiff was not required to provide “an admission, affirmation, or acknowledgment of the debt, a promise to pay the debt, or a waiver of the statute of limitations”; and
• that if the plaintiff made a payment or promised to pay the debt, the statute of limitations would be renewed.

The suit argues that these alleged non-disclosures could mislead the unsophisticated consumer into unknowingly surrendering his or her rights under state and federal law.