Dynamic Recovery Solutions Hit with Class Action Over Time-Barred Debt Collection Efforts

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A proposed class action filed against Dynamic Recovery Solutions takes issue with the debt collector’s alleged failure to inform a consumer of his rights concerning time-barred debts. Around June 22, 2017, the defendant reportedly sent the plaintiff a collection letter that included two payment plans for a debt purportedly owed to Capital One. Also included in the letter, the lawsuit continues, were the following statements:

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

What the letter deceptively failed to note, the suit argues, was that the debt’s statute of limitations would be renewed if the plaintiff made any partial payments or agreed to one of the included payment plans.

“In fact,” the complaint states, “had [the plaintiff] chosen a payment plan option, and advised [the defendant] of this in writing, the partial payment would revive the statute of limitations rendering the Plaintiff worse off than if he had rejected the offer.”