Debt collectors scored a win on Monday when the United States Supreme Court ruled that pursuing stale debt is not a violation of the Fair Debt Collection Practices Act (“FDCPA”).

The case of Midland Funding LLC v Aleida Johnson addressed an ongoing issue for creditors, debt collectors and consumers. As debts age, and are often sold, there remains a question of how far collectors may go to pursue payment on the debt.

Summary

A highly significant ruling involving fraudulent transfers recently decided by the Eleventh Circuit could have a far-reaching impact on distressed lending and investing.   In Senior Transeastern Lenders v. Official Committee of Unsecured Creditors (In re TOUSA, Inc.), 2012 WL 1673901 (11th Cir.