U.S. Supreme Court Declines Time-Barred Debt Appeal

On May 22, 2017, the U.S. Supreme Court declined an appeal by Domick Nelson regarding a dismissed suit against debt collector Midland Funding, LLC.

Nelson filed for Chapter 13 bankruptcy protection in February 2015. The following month Midland filed a proof of claim seeking payment of $751.87 in unpaid credit card debt. The credit card had not been used since November 2006, almost a decade earlier, and was outside the statute of limitations for debt collection in Missouri. Nelson filed a class action suit against Midland in April 2015, accusing it of violating the Fair Debt Collection Practices Act by seeking collection on time-barred debts. The  District Court dismissed the lawsuit that August.

Nelson appealed the decision with the Eight Circuit, but it was affirmed in September of 2016. Nelson then appealed the Eight Circuit’s decision to the Supreme Court, citing a conflict between the consumer protection and bankruptcy law, but the Supreme Court declined to take up the case.