Convergent Outsourcing, Pinnacle Credit Services Hit with FDCPA Lawsuit Over Time-Barred Debt

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An Alabama woman has filed suit against Convergent Outsourcing, Inc. and Pinnacle Credit Services, LLC over an allegedly illegal attempt by the companies to collect on a time-barred debt through “deceptive and misleading” collection letters. The plaintiff says she received a collection letter from Convergent containing a settlement offer and the following statement:

“The law limits how long you can be sued on a debt. Because of the age of your debt, Pinnacle Credit Services, LLC will not sue you for it, and Pinnacle Credit Services, LLC will not report it to any credit reporting agency.”

The suit argues that the plaintiff had not made payments on her alleged debt within the past four years, meaning it was time-barred under Alabama’s statute of limitations. As a result, debt collectors were not permitted to sue the plaintiff to collect on the debt, the complaint says. Nevertheless, by stating that Pinnacle “will not” sue instead of informing the plaintiff that it “cannot sue,” the defendants imply that the debt collector simply chose not to commence litigation when, in reality, the law prohibits it from doing so, the suit says.

Furthermore, the case claims the letter made no mention of Convergent’s inability to sue or report the debt and argues that as a result, the plaintiff could have been led to believe that Convergent, as her creditor, was not restricted by the statute of limitations.