A decision got handed down today regarding the Fair Debt Collection Practices Act. This decision clears up some ambiguity in the law relating to whether filing a lawsuit to collect a debt that it is outside of the statute of limitations falls into the "bona fide error" exception to the FDCPA (if a debt collector violates the act, they can argue that their violation was not in bad faith using this exception).
The court decided in order to use this exception if a law firm files an action to collect a debt for a debt collector outside of the statute of limitations, that law firm must demonstrate that it did its own analysis to determine whether or not the debt was within the statute of limitations. This seems like a no-brainer, but it isn't, and this is a great victory for consumers.
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