A federal appeals court has ruled that a dunning letter from a debt collector that does not mention a statute of limitations can mislead consumers into thinking the debt is enforceable in court.

The U.S. Court of Appeals for the Seventh Circuit, combining appeals of two lower federal court decisions in Illinois, ruled March 11 that a settlement offer that does not include notice that the debt is time-barred could violate the Fair Debt Collection Practices Act. Read the appeals court ruling here.

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