Complete Dismissal of FDCPA Claim Premised on FCRA Threat and Debt Older than Seven Years

On a motion for judgment on the pleadings, Moss & Barnett successfully argued that its debt-collector client did not violate the FDCPA by stating in a collection letter that a negative credit report may be submitted if the consumer failed to repay a debt.  At the time of the letter, the debt was more than seven years old.  The consumer alleged that the statement was false and misleading and threatened action that cannot legally be taken because the FCRA does not permit the reporting of a debt that is more than seven years old.  The court disagreed with the consumer, finding that the FCRA prohibition, on its face, applied to consumer reporting agencies, not debt collectors or debt owners.  Because it was not illegal for the collector to report the debt to a credit reporting agency beyond the seven-year window, the court dismissed the consumer’s claims.