High Court to Rule On ‘Discovery Rule’ in Debt Collection Suits

The U.S. Supreme Court will decide when the clock starts running on Fair Debt Collection Practices Act lawsuits, a decision which could limit debtors’ ability to shake debt collection lawsuits.

The high court on Feb. 25 agreed to hear a case out of the U.S. Court of Appeals for the Third Circuit, Rotkitske v. Klemm, which found that the “discovery rule” does not apply in FDCPA lawsuits. The discovery rule states that the statute of limitations on a lawsuit can only begin running when a plaintiff, in this case a debtor, finds out about a violation rather than when ...