The Puerto Rico Court of Appeals recently ruled on a significant debt collection case involving Island Portfolio Services, LLC, and Gerardo J. Espinet Ortiz. The court denied Espinet Ortiz's appeal regarding a decision made by the lower court, allowing the debt collection process to continue. This ruling is important as it clarifies the application of the statute of limitations in debt collection cases in Puerto Rico.

The case, titled Island Portfolio Services, LLC Como Agente De Luna Chica, LLC v. Gerardo J. Espinet Ortiz, was filed under docket number TA2026CE00867. It stems from a dispute over a credit card debt of $9,233.99 that Espinet Ortiz allegedly owes to Island Portfolio Services, acting as an agent for Luna Chica, LLC. The court's decision impacts how similar debt collection cases may be handled in the future.

Background

Island Portfolio Services, LLC, filed a lawsuit against Gerardo J. Espinet Ortiz on May 28, 2026, seeking to collect a debt related to a credit card account with FirstBank of Puerto Rico. The company claimed that Luna Chica, LLC had acquired all rights to the credit card account through a Bill of Sale and Assignment of Accounts. They argued that Espinet Ortiz failed to pay the debt despite repeated requests.

On June 3, 2026, the lower court scheduled a hearing for July 2, 2026, to address the debt collection claim. However, on June 29, 2026, Espinet Ortiz filed a motion to dismiss the case, arguing that the claim was time-barred under Puerto Rico's statute of limitations, which allows four years for personal debt collection actions. He contended that the statute of limitations began on September 12, 2021, and had expired before the lawsuit was filed.

The Ruling

The Court of Appeals, in its decision dated September 22, 2026, upheld the lower court's ruling to deny Espinet Ortiz's motion to dismiss. The judges on the panel included President Judge Rodríguez Casillas, Judge Barresi Ramos, and Judge Santiago Calderón. The court stated, "We do not find that the lower court acted with prejudice, bias, or manifest error that would result in a failure of justice in rendering the interlocutory resolution." This means that the court found no significant legal error in the lower court's decision.

The court's ruling emphasized that the lower court's decision was based on the interpretation of the applicable statute of limitations and the origin of the debt. The judges noted that the debt originated before the implementation of the new Civil Code in 2020, which influenced their decision on the applicable statute of limitations.

Impact

This ruling has implications for future debt collection cases in Puerto Rico. It clarifies how courts may interpret the statute of limitations concerning debts that originated under previous legal frameworks. The decision indicates that debts created before the new Civil Code's enactment may still be subject to the older statute of limitations, which could affect the rights of debtors and creditors alike.

The court's ruling also underscores the importance of timely legal action in debt collection cases. Debtors may need to be more vigilant about their financial obligations, as delays in addressing debts could lead to legal action that may not be easily dismissed based on the statute of limitations. This case serves as a reminder of the complexities involved in debt collection and the need for both parties to understand their rights and responsibilities under the law.

What's Next

Following this ruling, the case will proceed in the lower court as the Court of Appeals denied Espinet Ortiz's request for a review. There are no indications in the court filing regarding any related cases or further appeals at this time. The proceedings in the lower court will continue, and it remains to be seen how the case will develop as it moves forward.