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Transworld Time-Barred Debt Collection Letter FDCPA, FCCPA Class Action

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Papers on Clipboard Saying "Debt Collection"

Consumers cannot be sued for most of their debts forever. At some point, debts for personal, family, or household uses become time-barred and creditors can no longer take them to court to recover the money owed. The exact length of time it takes for a debt to become time-barred varies from state to state. The complaint for this class action alleges that debt collector Transworld Systems, Inc. tried to collect a debt without mentioning to the consumer that the debt was time-barred, in violation of the Fair Debt Collection Practices Act (FDCPA) and the Florida Consumer Collection Practices Act (FCCPA).

The Time-Barred Class for this action is

  • All persons with Florida addresses
  • Who were sent a letter
  • Between June 21, 2017 and June 21, 2018,
  • In an attempt to collect a debt for personal, family, or household purposes,
  • For which Transworld Systems was not the original creditor,
  • Which involved a time-barred debt, and
  • Transworld did not disclose the time-barred nature of the debt and that any payment towards the debt could revive the statute of limitations.

Plaintiff Sandro Rigo allegedly owed a debt to First Bank of Delaware, for personal, family, or household purposes. At some point, the debt was transferred to Jefferson Capital Systems, LLC, which in turn asked Transworld to collect the debt.

Transworld sent Rigo a debt collection letter dated March 20, 2018, stating that the “surrent balance” of the debt was $1,763.54. A copy of this letter is attached to the complaint as Exhibit A.

At the time the letter was sent, the debt was already time-barred, which means that Transworld could not take any legal action to collect the debt. However, the letter does not mention that the debt is time-barred, nor does it mention that if Rigo were to make even a single payment on the debt, he could revive the statute of limitations, making it possible again for the current owner of the debt to sue him for it.

The complaint claims that the FDCPA requires that Transworld inform Rigo of both these facts, and that it violates the FCCPA by “knowingly making false assertions” about Rigo’s rights in relation to the debt.

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