The clock for claims under the Fair Debt Collection Practices Act starts running when the bank freezes a debtor’s account, not when the notice of debt is served, a federal appeals court has held.
The statute of limitations ruling by the U.S. Court of Appeals for the Second Circuit revived, at least for the time being, an unfair debt collection action against a lawyer and his firm. The circuit reversed a district judge who had barred debtor Alexander Benzemann from bringing an action under the act and remanded the case for further proceedings in Benzemann v. Citibank N.A., 14-2668-cv.
