Woman Argues Debt Collection is Barred by Illinois Statute of Limitations

An Illinois woman has fled a new lawsuit against State Collection Service, alleging that the company attempted to collect a debt from her that fell outside of the Illinois statute of limitations.

The plaintiff, Kelly O., says she found a curious item when looking through her credit report in May 2018: a State Collection Service entry that she didn’t recognize. When she called the company to talk about the alleged debt, an agent told her that she owed more than $125 because of a medical debt from February 2012.

On the phone call, the agent proceeded to attempt to collect payment of the alleged debt. This concerned Kelly, who turned to her attorneys for help regarding her rights in this matter. She argues that there is an Illinois statute of limitations in place barring collection of the debt.

Indeed, she says, the debt collection agency cannot sue the plaintiff to collect on the debt, which had passed the five-year Illinois statute of limitations requirement.

However, while on the phone with the debt collection agency, Kelly says she was not told that the debt was time-barred and subject to the Illinois statute of limitations. Moreover, she claims the agent tried to get Kelly to pay the debt. Paying, agreeing to pay, or even acknowledging the debt could effectively reset the Illinois statute of limitations.

Kelly’s lawsuit alleges that she was misled by State Collection Service’s actions, and worries that the company will continue to attempt to collect payment, which might result in harm to her credit or other economic harm. Kelly filed her lawsuit under federal and state debt collection laws on June 3, 2018.

The Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a set of debt collection regulations meant to help protect consumers from being taken advantage of, harassed, or threatened by a debt collection agency. The FDCPA was first enacted by Congress in 1978.

Over the years, collection agencies have become more and more aggressive, and many of these companies may work for major banks, credit card companies, and student loan companies, as well as debt buyers. In some cases, the companies may use illegal debt collection practices to collect on what’s owed them—or even an invalid debt. Indeed, millions of Americans may have been targeted with illegal and abusive debt collection practices, but most are not armed with the information necessary to know there are laws in place protecting them from such abuses.

Laws at both the federal and state level protect Americans from abusive debt collection practices. Debt collectors are not allowed to send confusing collection letters, make threats, harass, add fees, make robo-calls, or communicate with third parties about a debt, among others.

Under the FDCPA, if a debt collector is found to have violated these regulations, the consumer is entitled to statutory damages of $1,000, plus any actual or emotional damages.

Filing an FDCPA Lawsuit Over Invalid Debt

This investigation is seeing claimants across the nation, especially residents of Illinois, Indiana, and Wisconsin. If you have suffered from abusive debt collection practices like confusing letters, harassment, or others, you may be able to file an FDCPA lawsuit.

The FDCPA Lawsuit is Case No. 1:18-cv-03868, in the U.S. District Court for the Western Division of the Northern District of Illinois.

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.