Outsource Receivable Management Hit with FDCPA Suit Over Statute of Limitations Language

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Outsource Receivables Management, Inc. has been hit with a proposed class action lawsuit in New York alleging it violated the federal Fair Debt Collection Practices Act by sending out letters that constitute “abusive, deceptive and unfair collection practices.”

At issue in the case is the inclusion of the following statement that allegedly appeared on the back of the letter received by the plaintiff:

“Your creditor or debt collector believes that the legal limit (statute of limitations) for suing you to collect this debt may have expired. It is a violation…to sue to collect on a debt for which the statute of limitations has expired. However, if the creditor sues you to collect on this debt, you may be able to prevent the creditor from obtaining a judgment against you…Even if the statute of limitations has expired, you may choose to make payments on the debt. However, be aware: if you make a payment…the time period in which the debt is enforceable in court may start again.”

The lawsuit claims this statement is a false representation of the legal status of the plaintiff’s debt, as it had not yet expired. Furthermore, there could be several different meanings behind such a statement, the lawsuit alleges, such as:   

The class proposed by the suit includes all New York residents who received notices from the defendant regarding debts owed to Great Lakes Medical Imaging that contained the alleged violations discussed in the complaint.