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Seventh Circuit: Collection of Time-Barred Debts May Violate FDCPA If Debtor Not Advised That Debt Is No Longer Legally Enforceable
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By Lori A. Medley

A recent decision from the United States Court of Appeals for the Seventh Circuit held that collection or "dunning" letters sent after a debt has become time-barred by the applicable statute of limitations violate the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq. ("FDCPA"), unless the dunning letters advise the debtor that the debt is no longer legally enforceable pursuant to the applicable statute of limitations.

In the consolidated appeals of McMahon v. LVNV Funding, LLC and Delgado v. Capital Management Services, Nos. 12-3504 & 13-2030, the Seventh ...

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