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The Supreme Court Has Opened the Door for Extending the Statute of Limitations for FDCPA Claims

The Fair Debt Collections Practices Act, U.S.C. § 1692 et seq. (the “FDCPA”) regulates the actions that a debt collector may engage in while collecting a consumer debt.  A violation of the FDCPA permits a consumer to bring an action for a violation of the FDCPA within one year of the date the wrongdoing occurred.  The Supreme Court of the United States recently, however, clarified that an extension of the one-year statute of limitations is possible based on equitable principles (i.e., equitable tolling and equitable fraud discovery rule).  

In Rotkiske v. Klemm, No. 18-328 (U.S. Dec. 10, 2019), the plaintiff alleged a violation of the FDCPA and instituted suit approximately 6 years after the alleged violation occurred.  The Supreme Court affirmed the dismissal of plaintiff’s action by the lower courts and held that absent the application of an equitable doctrine, the date the FDCPA violation occurs is when the statute of limitations for instituting a lawsuit begins to run.   Therefore, it is always important to keep in mind corollary state laws that may have different limitation periods (such as the Pennsylvania Fair Credit Extension Uniformity Act 73 PA. Cons. Stat. § 2270 et seq.), along with the specific reasons why a party may not have know about the FDCPA violation earlier.

If you believe you have been subjected to any conducted by a debt collector that is intrusive, harassing or improper, it is important to seek the guidance of a skilled FDCPA and Consumer Protection Attorney as soon as possible. To schedule a consultation to discuss your situation with one of our attorneys, contact The Kim Law Firm, LLC today by calling 855-996-6342.