11th Circuit: Proof of Claim is Attempt to Collect a Debt. If it’s late it’s barred by FDCPA

Livinglies's Weblog

Just a moment while I am on the run. Hat tip to my clients who sent me this. It might be time to take a harder look at making claims under FDCPA.

In Crawford v. LVNV Funding, LLC, the Eleventh Circuit held that the creditor violated the Fair Debt Collection Practices Act (“FDCPA”) by filing a proof of claim to collect a debt that was unenforceable because the statute of limitations had expired.

 In Crawford, a third-party creditor acquired a debt owed by the debtor from a furniture companyIn affirming the bankruptcy court’s dismissal, the district court found that the third-party creditor did not attempt to collect a debt from the debtor because filing a proof of claim is “merely ‘a request to participate in the distribution of the bankruptcy estate under court control.’ Furthermore, the district court found that, even if the third-party creditor was…

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