Justices rule against consumer in debt collection case - WLOX.com - The News for South Mississippi

Justices rule against consumer in debt collection case

WASHINGTON (AP) - The Supreme Court says debt collection companies can't be sued for trying to recover years-old credit card debt from people who seek bankruptcy protection.

The justices on Monday ruled 5-3 in favor of Midland Funding, which was trying to collect $1,879 in debt that an Alabama woman had incurred more than 10 years earlier.

Aleida Johnson argued that Midland was wrong to go after the debt because Alabama law has a six-year statute of limitations for a creditor to collect overdue payments.

A federal appeals court said Johnson could sue Midland for violating the Fair Debt Collection Practices Act. The law prohibits collection companies from trying to recover debts outside the statute of limitations.

But Justice Stephen Breyer said the law doesn't apply to bankruptcy proceedings.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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