Consumer Alleges Ability Recovery Services Tried to Collect Time-Barred Debt

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From Florida comes a proposed class action in which a consumer claims Ability Recovery Services, LLC overstepped state and federal debt collection laws when it mailed her a notice in an attempt to collect a time-barred obligation. The lawsuit claims the defendant’s notice—which concerned a medical services debt dating back to late 2012—purportedly offered to settle the plaintiff’s account for 50 percent of the total balance. If the plaintiff were to make payment on the time-barred debt, however, the defendant “could lawfully sue” the individual, as the debt’s statute of limitations would be effectively revived, the case says.

“The collection letter does not advise [the plaintiff] that if [the plaintiff] were to agree to any ‘settlement offer’ or enter any ‘settlement’ as [the defendant] urges, the current-creditor could then sue [the plaintiff] for the full amount of the consumer debt that was previously time-barred,” the complaint reads.