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
Date Written: August 2010
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.
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