Legal Question in Credit and Debt Law in New Jersey

Re: Question regarding the FDCPA

If the debt was incurred primarily for personal, household or family purposes, it is probably covered by the Fair Debt Collection Practices Act (FDCPA). Under the FDPCA and according to almost every case on the issue, it is a violation to threaten to sue or to actually sue when the SOL has expired. I handle these types of cases all the time (at least 2 a month). Feel free to call me for additional info.

Re: Question regarding the FDCPA

In addition to Mr. Chuldky's reply, I can add that bringing a baseless suit is also a violation of the laws of most States, New Jersey among them. In New Jersey, it is also a violation to continue such a suit if its baseless nature is pointed out. In some instances, there may be an ethical issue.

The problem that you raise has become worse recently and those of us who practice in the area of business law are waiting for the courts realize the extent of the issue. Credit reporting agencies erroneously report any credit to an account as a payment. Creditors enter bogus credits to look like payments thus giving unscrupulous collectors and excuse for "believing" that the SOL has not been exceeded. There is a lot of trade in aging "chase paper" as well as many independent collectors who all but state that they are affiliated with the original creditor when, in fact, they are not.

The FDCPA and the FCRA as well as state laws give the consumer all the tools needed to strike back and cause the kind of pain to these collectors and the reporting agencies to stop these practices. However, there must be at least a critical mass of consumers who are willing to carry the case through to completion just for the principal. That is because the collectors will generally back off as soon as a credible defense has been mounted and bother an easier target. Like a lot of life, if one tolerates the misbehavior, the result is more of the same.

See also: http://info.corbettlaw.net/lawguru.htm