LexisNexis Emerging Issues Analysis, 2017 Emerging Issues 7560

In a 5—3 majority decision authored by Justice Breyer, the Supreme Court concluded that a debt collector does not violate the Fair Debt Collection Practices Act (the “Act”) by filing, in a chapter 13 bankruptcy case, a proof of claim that on its face indicates that the statute of limitations governing collection of the claimed debt has expired.  More specifically, the Court finds that the filing of “a proof of claim that is obviously time barred is not a false, deceptive, misleading, unfair or unconscionable debt collection practice within the meaning of the [Act],” and as such, does not give rise to a claim by the consumer debtor for civil damages under the Act. 

This commentary analyzes the holding and implications of the Midland Funding opinion.