FBCS, Cavalry SPV Facing Lawsuit Filed Over Allegedly Unlawful Time-Barred Debt Collection

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A proposed class action has been filed in South Carolina federal court against FBCS, Inc. and Cavalry SPV I, LLC over the companies' alleged failure to communicate to a consumer her rights concerning her time-barred debt.

According to the complaint, FBCS sent the plaintiff a collection letter regarding a time-barred debt allegedly owed to Cavalry. The letter reportedly contained the following statement:

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

The case argues that this statement is misleading in that it implies Cavalry has chosen not to sue the plaintiff when, in truth, the debt collector is prohibited by law from filing suit against the woman. From the complaint:

“The statement contained in Defendant FBCS’s letter is materially deceptive to the unsophisticated consumer, who would believe that Defendant Cavalry or a subsequent creditor has the option to change its mind should he/she not pay the alleged debt.”

Moreover, the letter not only failed to mention that FBCS is also barred from suing the plaintiff, the suit says, but withheld that any payments the woman submitted could renew the debt’s statute of limitations and open her up to the possibility of litigation.