CFPB Supports Plaintiff in FDCPA Case

Plaintiff is appealing Fourth Circuit’s motion to dismiss for debt collection law firm in case on FDCPA one-year statute of limitations.

7/2/2019 7:00 AM

CFPB Supports Plaintiff in FDCPA Case

The Consumer Financial Protection Bureau is supporting a plaintiff’s argument in a case currently on appeal before the Fourth Circuit. The case, Bender v. Elmore & Throop, P.C., focuses on the Fair Debt Collection Practices Act’s one-year statute of limitations.

The bureau’s amicus brief, “supports the position of the plaintiff-appellant that the one-year period runs separately for each discrete FDCPA violation,” Barbara Mishkin, of counsel for Ballard Spahr LLP, writes in the firm’s Consumer Finance Monitor.

This is the first amicus brief filed by the bureau under the leadership of Director Kathy Kraninger.

After the plaintiff filed the lawsuit in April 2018 for alleged violations of the FDCPA when the law firm continued to contact the family about a debt, the district court ultimately granted the law firm’s motion to dismiss because the lawsuit was filed after the FDCPA’s one-year statute of limitations, according to Mishkin’s article.

However, Mishkin reports, “In its amicus brief, the CFPB argues that the FDCPA’s one-year SOL ‘means what it says: A plaintiff may sue to challenge violations that occurred in the previous year. There is no exception for violations that are similar to earlier time-barred limitations.’ The CFPB asserts that the district court’s interpretation ‘is inconsistent with the statutory text, the great majority of case law, and Congress’s express purpose in enacting the FDCPA.”

Read the complete report on Ballard Spahr LLP’s Consumer Finance Monitor.

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