Supposed Rejection of Arbitration Clause is Rejected

A clever debtor was nevertheless unsuccessful in trying to use the Bankruptcy Code to escape a well-drafted arbitration clause contained in a credit card agreement.  In Mines v. Galaxy Int;l Purchasing, Mines filed a putative class action contending that Galaxy violated Section 1692g(a)(2) of the FDCPA by failing to identify the current owner of his…

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Proofs of Claim on Time-Barred Debts Do Not Violate the FDCPA

A divided Supreme Court has ruled in Midland Funding, LLC v. Johnson that filing a time-barred proof of claim in bankruptcy does not violate the Fair Debt Collection Practices Act.  The opinion by Justice Breyer was joined by four conservative justices.  The opinion drew a dissent from Justice Sotomayor who was joined by Justices Ginsberg…

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