A Vermont consumer claims in a proposed class action that Portfolio Recovery Associates, LLC used false and misleading representations in an effort to collect on his time-barred debt.
The lawsuit says the debt collector violated the Fair Debt Collection Practices Act (FDCPA) with a collection notice it sent to the plaintiff in August 2017. According to the complaint, the defendant misrepresented the legal status of the plaintiff’s time-barred debt when it implied it was able to sue the man for the obligation. The letter allegedly stated, in part (emphasis in complaint):
“[T]he law limits how long you can be sued on a debt and how long a debt can appear on your credit report. Due to the age of this debt, we will not sue you for it or report payment or non-payment of it to a credit bureau."
The case argues this statement consists of “carefully crafted language” meant “to appear gratuitous rather than providing the legally required disclosure that the debt” was past Vermont’s six-year statute of limitations, meaning no entity could sue the plaintiff over it.
The defendant further violated the FDCPA by offering the consumer a payment plan without disclosing that any payment would revive the debt’s statute of limitations, the suit alleges.