Ruth Bader Ginsburg

Justices rule against consumer in debt collection case

A divided Supreme Court ruled Monday that debt collection companies can't be sued for trying to recover years-old credit card debt from people who seek bankruptcy protection.

The 5-3 ruling is a blow to consumer groups that complain debt collectors are unfairly misleading people into repaying old debts even when they are not required to under the law.

The court sided with Midland Funding, which was trying to collect $1,879 in debt an Alabama woman had incurred more than 10 years earlier. Aleida Johnson argued that Midland was wrong to go after the debt because Alabama law has a six-year statute of limitations for a creditor to collect overdue payments.

While Johnson...

59°