Debt settlement company, LVNV Funding, violates FDCPA in Federal Bankruptcy Court
Consumer debt buyers, like LVNV Funding, are filing proofs of claims on debts that are unenforceable according to the 11th Circuit Court of Appeals because the state statute of limitations has run. The statute of limitations on contract debt in Georgia is 6 years from the “last transaction” date (e.g., the last date a payment was received by the creditor). The Fair Debt Collections Practices Act, which only governs debt buyers and not original creditors, is a consumer protection statute that “imposes open-ended prohibitions on, among other things, false, deceptive, or unfair” debt collection practices. The 11th Circuit decided that filing a proof of claim against someone in an active bankruptcy on stale debt violates this provision of the FDCPA.