Debt Collector’s Proof of Claim Raises FDCPA Liability

2016-06-03

The 11th Circuit Court of Appeals recently held that a debt collector who files a proof of claim in a bankruptcy proceeding violates the Fair Debt Collection Practices Act (“FDCPA”) when the claim is for a time barred debt. The case is Johnson v. Midland Funding.

When filing bankruptcy, the bankruptcy code permits a creditor who wants to have a claim for repayment from the debtor to file what is called a proof of claim. This is an assertion that the debtor owes the creditor money. However, an issue arises when the creditor is a debt collector and files a claim for an amount that is beyond the applicable statute of limitations. The reason is that Fair Debt Collection Practices Act prohibits debt collectors from using any “false, deceptive, or misleading representation or means in connection with the collection of any debt.”

The Court found that there was no conflict between the FDCPA and the bankruptcy code. The filing of a proof of claim is misleading and is attempting to collect a debt which the creditor wasn’t legally entitled to collect due to it being beyond the statute of limitations, which is an FDCPA violation.

If you are being harassed for a Miami debt by a debt collector or any other party, feel free to contact The Law Office of Shaya Markovic, P.A. for a free consultation. There is no fee for my office to represent you in debt collector harassment cases. My office fights and sues debt collectors for violating debt collection laws. The Law Office of Shaya Markovic, P.A. (786)529-2176.

$8,000 Portfolio Recovery Lawsuit Gets Dismissed

2016-03-17

It’s always nice to get my client a better results than they expect. Today, I had my most recent victory against Portfolio Recovery Associates. Portfolio Recovery Associates sued my client seeking more than $8,000 as a result of an alleged credit card debt. After receiving the debt lawsuit, the client hired The Law Office of Shaya Markovic, P.A. to defend his credit card lawsuit. During the initial consultation, the client said that in order to make the case go away he was willing to make a payment of a few thousand dollars. Our office immediately realized numerous defenses to the credit card lawsuit and filed a Motion to Dismiss the Complaint. Yesterday, was the day of the hearing on our Motion to Dismiss and I’m happy to report that after discussing the weaknesses of their case Portfolio Recovery Associates backed down and agreed to dismiss the case with prejudice, meaning they can never file this lawsuit again against my client.

Markovic Law

Debt Collector’s Proof of Claim Raises FDCPA Liability

$8,000 Portfolio Recovery Lawsuit Gets Dismissed