Man Says Indiana Statute of Limitations Puts His Debt Off-Limits

An Indiana man alleges that Transworld Systems Inc. continued trying to collect a debt after the Indiana statute of limitations had run. The man recently filed a Federal Debt Collection Practices Act (FDCPA) lawsuit against the company, raising the Indiana statute of limitations as a defense.

Plaintiff Walter B. alleges defendant Transworld Systems Inc. had used multiple aggressive and manipulative debt collection tactics to try to collect on expired debts, each of which are allegedly violations of the FDCPA.

The FDCPA was passed by Congress in 1978 to help consumers combat aggressive debt collectors that were allegedly using unethical tactics to intimidate consumers into paying.

One of these allegedly illegal debt collection tactics is trying to collect on expired debts, in situations where the law says the debt is told old to collect.

According to the FDCPA lawsuit, Walter had discovered the old debt after checking over his credit report. He says he discovered multiple entries bearing the defendant’s title that were reported as being in collection status.

The credit report reportedly showed that Transworld had shown collection accounts dating as recently as March 20, 2018. Walter states he did not recognize these collection accounts, and had contacted Transworld to discuss them.

Overview of FDCPA Violations

According to the FDCPA lawsuit, Walter had gotten in contact with a Transworld representative on March 30, 2018, to discuss the alleged debts.

During this conversation, the representative had reportedly tried to collect on one of these alleged debts in the amount of $888. This debt was reportedly incurred from multiple medical expenses between January 2011 and December 2012, which is past the Indiana statute of limitations.

“An action upon promissory notes, bills of exchange, or other written contracts for the payment of money executed after August 31, 1982, must be commenced within six (6) years after the cause of action accrues,” the Indiana statute of limitations states.

This essentially means that the debt in question can no longer be collected under Indiana law. Even though the alleged debt was expired, the Transworld representative allegedly failed to explain or disclose this fact, Walter says.

After being left confused and stressed, Walter contacted his attorney. He says he discovered that collection of this debt was barred by the Indiana statute of limitations and that Transworld was allegedly violating the FDCPA.

Under the FDCPA, debt collectors and debt collecting companies cannot use abusive or intimidating tactics to convince consumers into paying. In addition, debt collectors are prohibited from suing or threatening other forms of legal action to collect on the alleged debt after the statutory limitations period has passed.

It is important to note that different states have different statutes of limitations regarding debts, which influences the consumer’s efforts to challenge the debt.

Debt collectors or debt collection companies found to be in violation of the FDCPA can face fines up to $1,000 per violation along with any other relevant damages. Walter states that at all times relevant, Transworld Systems was aware his debts were passed the Indiana statute of limitations but continued to try and collect on it and had also impacted his credit reports.

This Indiana Statute of Limitations Lawsuit is Case No. 3:18-cv-00421-PPS-MGG, in the U.S. District Court of Northern Indiana, South Bend Division.

Join a Free Unfair Collection Practices Class Action Lawsuit Investigation

If you’ve been hit with unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).

Get a Free Case Evaluation Now

DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.