Testing Materiality Under the Unfair Practices Acts: What Information Matters When Collecting Time-Barred Debts?

Consumer Finance Law Quarterly Report, Forthcoming

24 Pages Posted: 13 Aug 2010

See all articles by Nathalie Martin

Nathalie Martin

University of New Mexico - School of Law

Timothy E. Goldsmith

University of New Mexico - Dept. of Psychology

Date Written: August 2010

Abstract

Should creditors and debt collectors be required to disclose the fact that a debt is time-barred when attempting to collect from a consumer? This article describes an empirical study that compares how consumers react to two different collection letters, one in which the recipients are told explicitly that the debt being collected is time-barred, and one in which they are not given this information. The study measures whether consumers are equally willing to pay the debt, when they are told that the debt is time-barred. Appended to the article are the survey questions asked of the study participants.

Suggested Citation

Martin, Nathalie and Goldsmith, Timothy E., Testing Materiality Under the Unfair Practices Acts: What Information Matters When Collecting Time-Barred Debts? (August 2010). Consumer Finance Law Quarterly Report, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1657040

Nathalie Martin (Contact Author)

University of New Mexico - School of Law ( email )

1117 Stanford, N.E.
Albuquerque, NM 87131
United States

Timothy E. Goldsmith

University of New Mexico - Dept. of Psychology ( email )

1 University of New Mexico
MSC03 2220
Albuquerque, NM 87131-1161
United States

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