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- Fair Debt Collection Laws: 50-State Survey
Falling behind on bills is stressful enough without a barrage of calls, emails, letters, and other communications from debt collectors. This industry is historically infamous for using a range of unscrupulous tactics to extract money from debtors. Fortunately, the federal Fair Debt Collection Practices Act provides key protections to consumers. These include rules for how debt collectors can communicate with debtors and third parties, as well as prohibitions against harassment, abuse, misrepresentations, and unfair business practices more generally.
Many states have enacted their own fair debt collection statutes or regulations to protect their residents. These may largely parallel the FDCPA, or they may extend beyond its scope in certain ways. Thus, a consumer who suspects that a collector has used improper tactics may want to know about their rights under state law as well as the FDCPA.
In some states that do not specifically address fair debt collection practices, a broader consumer protection law may apply to misconduct by collectors. A debtor also might have a common-law claim against a collector. For example, they might have a defamation case if a collector releases false information about them that damages their reputation.
Click on a state below to learn more about fair debt collection law in that state. If you are currently facing harassment, abuse, or other misconduct, though, you should ask a consumer law attorney about the specific legal options that may be available in your situation.
Alabama Fair Debt Collection Law
Alabama does not specifically prohibit certain debt collection practices.
An isolated law governing collection agencies pertains only to license taxes that they are required to pay. Alabama Code Section 8-19-5, a provision of the Alabama Deceptive Trade Practices Act, broadly prohibits engaging in any unconscionable, false, misleading, or deceptive act or practice in the conduct of trade or commerce. However, a federal district court in Alabama has ruled that this law does not apply to loans and mortgages. Debtors still can assert their rights under the federal FDCPA.
Alaska Fair Debt Collection Law
The collection agency statutes impose few requirements, but related regulations contain more rules, and a broader consumer protection law applies.
Alaska Statutes Section 08.24.320 provides that a collection agency cannot use forms of demand or notice or other documents drawn to resemble court process in collecting bills, accounts, or other indebtedness. Meanwhile, Alaska Administrative Code Section 01.210 provides rules for financial institutions involving communications in debt collection. Among other things, a creditor generally may not communicate with a debtor about the collection of a debt after written notification from an attorney representing the debtor that further communications must be addressed to the attorney, or at the debtor’s place of employment unless their employer permits employees to receive these communications during working hours. Section 01.220 covers false, deceptive, or misleading representations or means, such as falsely indicating that the lender is affiliated with the government, misrepresenting the character, amount, or legal status of a debt, or threatening to communicate to someone else credit information that is known to be false.
More generally, the Alaska Supreme Court has ruled that the Alaska Unfair Trade Practices and Consumer Protection Act applies to debt collection agencies. The core of this law, Alaska Statutes Section 45.50.471, broadly prohibits unfair methods of competition and unfair or deceptive acts or practices in the conduct of trade or commerce. Section 45.50.531 allows someone who suffers an ascertainable loss of money or property due to an unlawful practice under Section 45.50.471 to bring a civil action for three times the actual damages, or $500 if that is greater, as well as any other relief that is necessary and proper.
Arizona Fair Debt Collection Law
Arizona imposes numerous duties on licensed collection agencies, which must operate openly, fairly, and honestly.
Arizona Revised Statutes Section 32-1051 generally provides that a collection agency must deal openly, fairly, and honestly in conducting its business. More specifically, it must not send to a debtor any notice, letter, or other communication that simulates legal process, misrepresents (or makes ambiguous) the character, extent, or amount of the debtor’s obligation, or represents or infers that the debtor’s obligation may be increased by adding certain fees or charges when these may not legally be added to the debtor’s obligation. A communication also must not threaten to sell the debtor’s obligation to someone else, or use the name of an attorney or law firm or claim to be from an attorney or law firm. The collector must not convey the impression that they are part of the state or another government entity, and (unless they are licensed to practice law) they must not represent or infer that they practice law or have a legal department.
The Arizona Department of Insurance and Financial Institutions has adopted a more specific rule prohibiting harassment by collection agencies, such as implying that someone is guilty of fraud or another crime, using obscene or abusive language, or disgracing or humiliating any person. Another rule governs communications by collection agencies, limiting phone contact to reasonable hours and generally prohibiting contacting a debtor at their place of employment. It also prohibits telling a third party, such as a friend or employer, about the debt. A related rule requires stopping communications with a debtor if they are represented by a lawyer and tell the collection agency that it should communicate through the lawyer, or if the debtor gives the collection agency written notice that they refuse to pay the debt or want the collection agency to stop further communications.
Another regulation prohibits collection agencies from misrepresenting the state of the law to a debtor, sending them written material that simulates legal process, or implying that a debtor may be subject to criminal prosecution or arrest if they fail to pay the debt. A further rule on fees and legal proceedings prohibits collecting a fee that the debtor is not required to pay under their contract with the collection agency’s creditor client or threatening to start legal proceedings against a debtor unless the collection agency intends to sue, among other things. Other collection agency regulations apply as well.
Arkansas Fair Debt Collection Law
The law covers various forms of harassment, abuse, misrepresentations, improper communications, and unfair practices.
Arkansas Code Section 17-24-504 provides that a debt collector must not communicate with a consumer at an unusual time or place or a time or place known to be inconvenient to the consumer. A collector also must not communicate with a consumer if they are known to be represented by an attorney regarding the debt, or at the consumer’s place of employment if the collector has reason to know that the employer prohibits the consumer from receiving the communication. In general, a collector must not communicate with anyone other than the consumer, their attorney, the creditor, their attorney, the debt collector’s attorney, or a consumer reporting agency. If a consumer tells a debt collector in writing that they refuse to pay the debt or want communications to cease, the collector generally must stop communicating with the consumer.
Section 17-24-505 further prohibits a debt collector from engaging in conduct that would lead to harassing, oppressing, or abusing someone. This includes using or threatening violence, using obscene or profane language, publishing a list of consumers who allegedly refuse to pay debts, placing phone calls without meaningful disclosure of the caller’s identity, or engaging someone in phone conversation repeatedly or continuously with the intent to annoy, abuse, or harass someone at the called number, among other things.
Meanwhile, Section 17-24-506 prohibits using false, deceptive, or misleading representations. These include implying that the debt collector is affiliated with the government, falsely representing the character, amount, or legal status of a debt, indicating that failing to pay the debt will result in arrest or imprisonment, threatening to take an action that cannot legally be taken, falsely implying that the consumer committed a crime, or using a written communication that simulates a court-approved document, among other things.
Finally, Section 17-24-507 prohibits unfair or unconscionable means. These include collecting a fee, charge, or expense incidental to the principal obligation unless this is expressly authorized by the agreement creating the debt or permitted by law, soliciting a postdated check for the purpose of threatening criminal prosecution, depositing a postdated check before the date on the check, or communicating with a consumer about a debt by postcard, among other things.
Section 17-24-512 provides that a debt collector who violates this law will be liable to a consumer for actual damages caused by the violation, up to $1,000 in additional damages, and the costs of the action and a reasonable attorney fee.
California Fair Debt Collection Law
A group of related statutes cover many types of threats, harassment, misrepresentations, and improper communications by debt collectors.
California Civil Code Section 1788.10 prohibits certain activities by debt collectors. These include using or threatening physical force or violence, using or threatening any criminal means to harm reputation or property, threatening that failing to pay a debt will result in an accusation that the debtor has committed a crime, threatening that failing to pay the debt may result in arrest, or threatening to tell someone the fact that a debtor has engaged in conduct (other than failing to pay the debt) that the debt collector has reason to believe will defame the debtor, among other things.
In addition, Section 1788.11 provides that a debt collector cannot use obscene or profane language, cause a telephone to ring repeatedly or continuously to annoy the person called, make a telephone call without disclosing the caller’s identity, or communicate with the debtor with a frequency that is unreasonable and constitutes harassment under the circumstances, among other things. Section 1788.12 generally prohibits a debt collector from communicating with the debtor’s employer about the debt, communicating information about the debt to a family member of the debtor other than their spouse before obtaining a judgment against the debtor, or giving any person a list of debtors that discloses the nature or existence of a debt, among other things.
Section 1788.13 prohibits various misleading practices, such as representing that the debt collector is affiliated with the government, falsely representing that someone is an attorney, falsely representing that the debt collector is a consumer reporting agency, falsely representing that the debt may be increased by adding fees or charges that may not legally be added, falsely representing the nature of the business of the debt collector, or falsely representing that a legal proceeding will be brought if the debt is not paid, among other things. Section 1788.14 prohibits a handful of other practices, such as getting an affirmation from a debtor of a debt that has been discharged in bankruptcy without telling them that this is not legally required, attempting to collect from the debtor part or all of the collector’s fee or charge for services rendered, or communicating with the debtor when the debt collector has been notified in writing by the debtor’s attorney that the debtor is represented by the attorney regarding the debt, if certain other requirements are met.
Section 1788.30 imposes civil liability on a debt collector that violates this law. A debtor can recover any actual damages sustained as a result of the violation. Moreover, if a debt collector willfully and knowingly violates the law with respect to a debtor, they also will be liable to the debtor for a penalty between $100 and $1,000 as determined by the court. Costs of the action will be awarded to the prevailing party, and reasonable attorney fees will be awarded to a prevailing debtor.
Colorado Fair Debt Collection Law
The law prohibits certain types of communications, as well as harassment, abuse, false or deceptive representations, and unfair or unconscionable actions.
Colorado Code Section 5-16-105 prohibits a collector from communicating with a consumer about a debt at an unusual time, place, or manner that is known or should be known to be inconvenient to the consumer. The default rule is that a collector cannot communicate with a consumer between 9 P.M. and 8 A.M. Moreover, a collector generally cannot communicate with a consumer if they are represented by an attorney with respect to the debt, and they cannot contact the consumer at their place of employment if they know or have reason to know that the employer prohibits the consumer from receiving these communications.
Section 5-16-106 further provides that a collector must not engage in conduct that harasses, oppresses, or abuses someone in connection with collecting a debt. Among other things, this includes using or threatening violence, using obscene or profane language, publishing a list of consumers who allegedly refuse to pay debts, advertising a debt for sale to coerce payment, or causing a telephone to ring or engaging a person in a telephone conversation repeatedly or continuously with the intent to annoy, abuse, or harass someone at the called number.
Section 5-16-107 prohibits a collector from using false, deceptive, or misleading representations in connection with collecting a debt. Among other things, this includes misrepresenting the character, amount, or legal status of a debt, implying that anyone is an attorney, implying that the collector is affiliated with the government, implying that failing to pay a debt will result in arrest or imprisonment, threatening to take any action that cannot legally be taken or is not intended to be taken, or implying that the consumer has committed a crime or has engaged in “disgraceful conduct.”
Section 5-16-108 more generally prohibits the use of unfair or unconscionable means to collect a debt. Among other things, this includes collecting any amount that is not authorized by the agreement creating the debt or permitted by law, soliciting a postdated check for the purpose of threatening or instituting criminal prosecution, depositing or threatening to deposit a postdated check before the date on the check, or communicating with a consumer by postcard.
Section 5-16-113 imposes civil liability for a violation of these rules. A consumer can recover their actual damages, any additional damages up to $1,000 that the court allows, and the costs of the action and reasonable attorney fees.
Connecticut Fair Debt Collection Law
Connecticut has enacted a cluster of laws and regulations governing creditor collection practices and consumer collection agencies.
Connecticut General Statutes Section 36a-646 prohibits a creditor from using any abusive, harassing, fraudulent, deceptive, or misleading representation, device, or practice to collect a debt. Related regulations describe these prohibited practices in more detail. For example, Connecticut Administrative Code Section 36a-647-4 limits communications with the debtor and with third parties, Section 36a-647-5 covers various forms of abuse and harassment, and Section 36a-647-6 covers fraudulent, deceptive, or misleading representations or practices.
Meanwhile, General Statutes Section 36a-805 further provides that consumer collection agencies must not engage in certain specified actions, such as instituting judicial proceedings on behalf of others, communicating with consumers in the name of an attorney, advertising or threatening to advertise a claim for sale as a means of forcing payment, or adding a post-charge-off charge or fee for the cost of collection to the amount of a claim that it receives for collection. Related regulations provide additional rules for this industry. For example, Administrative Code Section 36a-809-10 covers harassment and abuse, Section 36a-809-11 covers false, deceptive, and misleading representations, and Section 36a-809-12 covers unfair practices.
General Statutes Section 36a-648 imposes civil liability for violations of Section 36a-646 or Section 36a-805, or the related regulations. Damages may be awarded in an amount equal to the sum of actual damages, up to $1,000 in additional damages, and the costs of the action and reasonable attorney fees.
Delaware Fair Debt Collection Law
Delaware does not specifically prohibit certain debt collection practices.
Delaware courts have ruled that the false or misleading statements prohibited by the Delaware Consumer Fraud Act do not include post-sale representations. Debtors are entitled to the rights provided by the federal FDCPA.
Florida Fair Debt Collection Law
Florida prohibits various forms of threats, harassment, abuse, misrepresentations, and improper communications and disclosures.
Florida Statutes Section 559.72 prohibits someone collecting a consumer debt from using or threatening force or violence, pretending to be a law enforcement officer or a government agency representative, communicating with a debtor’s employer before obtaining a final judgment against the debtor, or disclosing information concerning the existence of a debt known to be reasonably disputed by the debtor without disclosing that fact. A collector cannot reveal information affecting the debtor’s reputation to someone outside their family if they have reason to know that the other person does not have a legitimate business need for the information. They generally cannot advertise a debt for sale as a means to enforce payment, or publicly publish or post the names of debtors in an effort to collect debts.
A collector also cannot willfully communicate with the debtor or a family member with a frequency that can be expected to harass the debtor or their family, or willfully engage in other conduct that can be expected to abuse or harass the debtor or their family. They cannot use profane, obscene, vulgar, or willfully abusive language in their communications with the debtor, and they cannot claim, attempt, or threaten to enforce a debt that they know is not legitimate, or assert the existence of another legal right that they know does not exist. They cannot communicate with the debtor between 9 P.M. and 8 A.M. without the debtor’s consent, and they generally cannot communicate with a debtor if they know that the debtor is represented by an attorney with respect to the debt. A collector cannot orally communicate with a debtor in a manner that gives the false impression that they are an attorney, and they cannot use communications that simulate legal process or give the appearance of being issued or authorized by the government.
Meanwhile, Section 559.77 allows a debtor to bring a civil action against someone who violated Section 559.72. They can recover actual damages and additional statutory damages up to $1,000, in addition to court costs and reasonable attorney fees. The court must consider the nature of the defendant’s non-compliance, the frequency and persistence of the non-compliance, and the extent to which the non-compliance was intentional in determining liability for additional statutory damages. This type of action must be brought within two years.
Georgia Fair Debt Collection Law
A Georgia law forbids unreasonable collection tactics related to certain types of loans, while a broader consumer protection law applies more generally.
The Georgia Installment Loan Act covers a contract or agreement to make a loan to an individual in an amount of $3,000 or less. Section 7-3-33 in this law prohibits willfully using unreasonable collection tactics. Some examples of these tactics include conduct that causes bodily injury or physical harm to the borrower or a family member, or constitutes a willful or intentional trespass by force on the borrower’s home or personal property. Section 7-3-33 also prohibits holding up the borrower to public ridicule, unreasonably degrading the borrower in the presence of neighbors or business associates, using printed material that resembles a summons or other legal document, or communicating with the borrower at an unreasonable time of night. This generally means between 10 P.M. and 5 A.M.
Section 7-3-50 further provides that an installment lender who violates the Act may be liable to a borrower for a single penalty in an amount equal to twice the amount of the interest and loan fees charged to the borrower on the most recent loan made by the lender to the borrower.
More generally, the Georgia Court of Appeals has ruled that the Georgia Fair Business Practices Act applies to unfair debt collection practices. Section 10-1-393 broadly prohibits unfair or deceptive acts or practices in the conduct of consumer transactions. Section 10-1-399 provides the rules and procedures for civil actions under this law.
Hawaii Fair Debt Collection Law
Hawaii prohibits a wide range of conduct from threats, harassment, and abuse to deceptive or misleading representations and unfair or unconscionable means.
Hawaii Revised Statutes Section 443B-15 provides that a collection agency must not collect a debt by using threats or coercion. This includes the use or threat of violence or other criminal means to cause harm to someone or their property or reputation, as well as an accusation or threat to falsely accuse someone of fraud, another crime, or conduct that would tend to disgrace the debtor or subject them to ridicule. False accusations made to others, threats to sell a debtor’s obligation to someone else who would be abusive, and threats that failing to pay a claim will result in arrest are also prohibited.
Section 443B-16 further prohibits a collection agency from oppressing, harassing, or abusing anyone in connection with collecting a debt. This includes using profane or obscene language to abuse the other person, or making phone calls without disclosing the caller’s identity or with the intent to harass or threaten someone at the called number, among other things.
Section 443B-17 provides that a collection agency must not unreasonably publicize information related to a debt or debtor in certain ways. This includes disclosing, publishing, or communicating false information to an employer or a family member of the debtor, as well as publishing or posting a list of debtors, among other things.
Section 443B-18 prohibits using a fraudulent, deceptive, or misleading representation or means to collect claims or get information about a debtor. This includes using a company name other than the name of the agency, failing to disclose in communications that they are from a debt collector, falsely representing the character, extent, or amount of a claim, falsely representing or implying that the collection agency is affiliated with the government, using a written communication that simulates a document issued or authorized by a court, or indicating that the debtor’s obligation may be increased by adding certain fees or charges that may not legally be added to the obligation, among other things.
Section 443B-19 also prevents a collection agency from using unfair or unconscionable means to collect a claim. This includes seeking a written statement that an obligation was incurred for necessities of life when this was not the case, collecting from a debtor some or all of the collection agency’s fees or charges for services rendered, collecting any interest or other fees or charges incidental to the principal obligation when this is not authorized by the agreement creating the obligation or authorized by law, or communicating with a debtor when it appears that they are represented by an attorney, among other things.
Finally, Section 443B-20 provides that a violation of any of these laws is considered an unfair or deceptive act or practice under Section 480-2, which allows a consumer to bring an action based on unfair or deceptive acts or practices.
Idaho Fair Debt Collection Law
A law regulating collection agencies requires open, fair, and honest dealings, while a broader consumer protection law also applies.
Idaho Code Section 26-2229A requires a collection agency to deal openly, fairly, and honestly without deception in conducting its business activities. More specifically, a collection agency cannot collect interest or other charges or fees that are incidental to the principal obligation unless the interest or incidental fees or charges fit within certain statutory requirements. In addition, a collector cannot use printed materials that resemble government forms or documents or legal forms in civil or criminal proceedings, and they cannot create the impression that they are connected with the government. When a collection agency has a managerial or financial interest in a creditor, or vice versa, this interest must be disclosed on every contact with a debtor. The statute provides a handful of other rules.
Section 48-602, a provision of the Idaho Consumer Protection Act, includes debt collection in its definition of trade and commerce. Section 48-603 provides numerous prohibitions that could apply to debt collection, such as engaging in an act or practice that is misleading, false, or deceptive to the consumer, or engaging in an unconscionable method, act, or practice in the conduct of trade or commerce. Section 48-608 outlines the private right of action under this law.
Illinois Fair Debt Collection Law
Illinois prohibits many forms of harassment, abuse, coercion, misrepresentations, and improper disclosures, while limiting communications overall.
240 Illinois Compiled Statutes Section 740/9 provides that a collection agency must not engage in any of certain acts while collecting a debt, each of which will be considered an unlawful practice. Some of these acts relate to misconduct during interactions with debtors, such as using or threatening force or violence against a debtor, threatening to instigate an arrest or criminal prosecution without a lawful basis, disclosing or threatening to disclose false information affecting a debtor’s reputation for creditworthiness, or threatening to initiate communication with a debtor’s employer unless certain conditions apply.
This statute also prohibits communicating with the debtor at a time or with a frequency that constitutes harassment, using profane, obscene, or abusive language in communicating with a debtor, communicating with a debtor when they are represented by an attorney regarding the debt, engaging in conduct that caused mental or physical illness to the debtor, disclosing information related to the debt to someone who does not have a legitimate business need for the information, misrepresenting the amount of the debt, giving the impression that the collection agency is affiliated with the government, or claiming that the debt may be increased by the addition of fees or charges that may not legally be added to it, among other activities. In general, a collection agency must not engage in dishonorable, unethical, or unprofessional conduct that is likely to deceive, defraud, or harm the public.
Section 740/9.2 further provides that an agency generally may not communicate with a debtor in certain circumstances. These include communicating with the debtor at any unusual time, place, or manner that should be known to be inconvenient to the debtor (generally assumed to be between 9 P.M. and 8 A.M.), communicating with the debtor when the collection agency knows that the debtor is represented by an attorney regarding the debt, or communicating with the debtor at their place of employment if the agency has reason to know that their employer prohibits these communications.
A collection agency generally cannot communicate with anyone other than the debtor, their attorney, the creditor, their attorney, the collection agency attorney, or a consumer reporting agency without the consent of the debtor. With a few exceptions, a collection agency must not communicate with the debtor if they notify the agency in writing that they refuse to pay a debt or that they want the agency to stop further communication.
However, Section 740/60 provides that a collection agency will not be subject to civil liability for failing to comply with Section 740/9.2 if it can show compliance with comparable provisions of the federal FDCPA.
Indiana Fair Debt Collection Law
Indiana does not specifically prohibit certain debt collection practices, but a general consumer protection law applies to collection agencies.
The Indiana law on collection agencies covers licensing procedures and does not enumerate specific practices that are prohibited when interacting with debtors. However, collection agencies and their activities are covered by a more general Indiana law. A provision of this law, Indiana Code Section 24-5-0.5-3, broadly prohibits unfair, abusive, or deceptive acts, omissions, or practices in connection with a consumer transaction, such as collecting a debt. (These include violations of the federal FDCPA and rules or regulations issued under its authority.) However, Section 24-5-0.5-4 does not permit a private right of action under this law for violations of the federal FDCPA.
Iowa Fair Debt Collection Law
The law forbids threats, harassment, and abuse, as well as certain types of information disclosure and deceptive or misleading representations.
Iowa Code Section 537.7103 prohibits debt collectors from collecting a debt by means of an illegal threat, coercion, or attempt to coerce. This includes using or threatening force or violence to cause harm to a person or their property, falsely accusing someone of fraud or any other crime, false accusations that a debtor is willfully refusing to pay a just debt, falsely threatening that failing to pay a debt may result in an arrest or property seizure, or threatening to sell an obligation to someone else who will be more abusive.
In addition, a debt collector cannot oppress, harass, or abuse someone while collecting a debt. This includes using profane or obscene language, making phone calls to the debtor without disclosing the name of the business or company that the debt collector represents, and causing a phone to ring or engaging a person in phone conversations repeatedly or continuously with the intent to annoy, harass, or threaten someone, among other things.
Section 537.7103 further prohibits debt collectors from disseminating information related to a debtor or debt in certain ways. This includes communicating the fact of a debt to a person other than the debtor or someone who might reasonably be expected to be liable for the debt (with some exceptions), publishing or posting a list of indebted individuals, or advertising a claim for sale while naming the debtor to enforce payment of a debt, among other things.
A debt collector also cannot use a fraudulent, deceptive, or misleading representation or means to collect a debt or get information about a debtor. This includes failing to disclose that a communication is from a debt collector, using a business name other than the true name of the business, misrepresenting the character, extent, or amount of a debt, creating a false impression that a debt collector is affiliated with the government, using a written communication that simulates a court document, or indicating that the debtor’s existing obligation may be increased by adding fees or charges that may not legally be added to it, among other things. The statute proceeds to list further miscellaneous acts that are prohibited.
Meanwhile, Section 537.5201 provides a cause of action to recover actual damages and a penalty between $100 and $1,000 from someone who has violated Section 537.7103.
Kansas Fair Debt Collection Law
Kansas does not specifically prohibit certain debt collection practices, but a more general consumer protection law may apply.
The Kansas Supreme Court has ruled that the Kansas Consumer Protection Act may apply to debt collection agencies. The Supreme Court held that three conditions must exist for a collection agency to fall within the KCPA. The debt sought to be enforced must have originated from a consumer transaction, the parties to the original transaction must have been a supplier and a consumer as defined by the KCPA, and the conduct giving rise to the claim (whether deceptive or unconscionable) must have occurred during the collection of a debt that arose from the consumer transaction and was owed by the consumer to the original supplier.
Within the KCPA, Kansas Statutes Section 50-626 provides a list of deceptive acts and practices, while Section 50-627 provides a list of unconscionable acts and practices. Section 50-634 describes the remedies that a consumer can pursue for a violation of this law. These may include damages or a civil penalty, whichever is greater.
Kentucky Fair Debt Collection Law
Kentucky does not specifically prohibit certain debt collection practices.
Courts have interpreted the Kentucky Consumer Protection Act to exclude claims against third-party debt collectors, since “privity of contract” is required between the plaintiff and the defendant. (A provision in this law, Kentucky Revised Statutes 367.170, prohibits unfair, false, misleading, or deceptive acts or practices in the conduct of trade or commerce.) Debtors still can assert their rights under the federal FDCPA.
Louisiana Fair Debt Collection Law
A law on unauthorized collection practices limits the communications of creditors.
Louisiana Revised Statutes Section 9:3562 provides that a creditor must not contact anyone who is not in the household of the debtor regarding their obligation to pay a debt, other than an extender of credit or credit reporting agency. If a debtor defaults on their promise to pay and has given notice in writing that the creditor must cease further contacts with them, the creditor must limit any subsequent mail contacts to one notice per month. (The notice must not be designed to threaten action that is not otherwise permitted by law.) In this situation, the creditor may make no more than four personal contacts with the debtor to settle the obligation. (Again, these must not be designed to threaten action that is not otherwise permitted by law.)
Moreover, the Louisiana Unfair Trade Practices and Consumer Protection Law may cover debt collection. A provision of this law, Section 51:1405, prohibits unfair or deceptive acts or practices in the conduct of any trade or commerce. Section 51:1409 describes the private right of action under this law.
Maine Fair Debt Collection Law
Maine limits communications between a debt collector and a consumer, while prohibiting harassment, abuse, misrepresentations, and unfair or unconscionable tactics.
32 Maine Revised Statutes Section 11012 provides that a debt collector generally may not communicate with a consumer at an unusual time or place or at a time or place that should be known to be inconvenient. (This usually means no communications between 9 P.M. and 8 A.M.) A debt collector generally cannot communicate with a consumer if they know that the consumer is represented by an attorney regarding the debt, and they cannot communicate with the consumer at their place of employment if they have reason to know that the employer prohibits the consumer from receiving a communication.
Furthermore, Section 11012 generally prohibits a debt collector from discussing the collection of the debt with anyone other than the consumer, their attorney, the creditor, their attorney, the collector’s attorney, and a consumer reporting agency. If the consumer tells the debt collector in writing that they refuse to pay the debt or that they want the collector to cease communications, the debt collector must not communicate further with the consumer, with limited exceptions.
Section 11013 prohibits numerous collection practices, such as harassment or abuse of the debtor. This includes using or threatening violence, using obscene or profane language, publishing a list of consumers who refuse to pay debts, or repeatedly engaging someone in telephone conversation with the intent to annoy, abuse, or harass someone at the called number, among other things. Section 11013 also prohibits false or misleading representations. These include falsely indicating that the debt collector is affiliated with the government, misrepresenting the character, amount, or legal status of a debt, falsely implying that someone is an attorney, implying that failing to pay the debt will result in arrest or imprisonment, or threatening to take an action that may not legally be taken, among many other things.
In addition, Section 11013 prohibits a collector from using unfair or unconscionable means to collect a debt. This includes soliciting a postdated check for the purpose of threatening criminal prosecution, threatening to deposit a postdated check before the date on the check, collecting any amount that is not authorized by the agreement creating the debt or permitted by law, or communicating with a consumer about a debt by postcard, among many other things.
Section 11054 imposes civil liability for a failure to comply with these provisions. A consumer may recover any actual damage caused by the failure and additional damages up to $1,000 at the discretion of the court. Moreover, they may recover the costs of the action and a reasonable attorney fee.
A separate but similar law, 9-A Maine Revised Statutes Section 5-116, prohibits certain types of illegal, fraudulent, or unconscionable conduct in collecting debts. These include using or threatening force or violence, threatening criminal prosecution, disclosing information affecting the debtor’s reputation for creditworthiness with reason to know that the information is false, disclosing information affecting the debtor’s reputation to someone other than the debtor or their spouse with reason to know that the other person does not have a legitimate business need for the information, or disclosing information about the existence of a debt known to be disputed by the debtor without disclosing that fact, among many other things. Section 5-201 provides that a consumer affected by a violation of this law can recover damages.
Maryland Fair Debt Collection Law
The law prohibits various types of threats, disclosures, and abusive or deceptive communications.
Maryland Commercial Law Code Section 14-202 provides that a collector cannot use or threaten force or violence, threaten criminal prosecution, disclose information that affects the debtor’s reputation for creditworthiness while knowing that the information is false, contact the debtor’s employer before getting a final judgment against the debtor, or disclose information that affects the debtor’s reputation to someone other than the debtor or their spouse while knowing that the other person does not have a legitimate business need for the information. The law further prohibits a collector from communicating with the debtor in a way that can be expected to abuse or harass them, from using obscene or grossly abusive language in communicating with the debtor, threatening to enforce a right with knowledge that the right does not exist, or using a communication that simulates legal process or appears to be issued or authorized by the government, among other things.
Section 14-203 provides that a collector who violates any of these rules is liable for damages caused by the violation, including damages for emotional distress or mental anguish even if there was no physical injury.
Massachusetts Fair Debt Collection Law
The law prohibits unfair, deceptive, or unreasonable tactics in collecting debts, which are considered violations of a separate consumer protection law.
Massachusetts General Laws Chapter 93 Section 49 prohibits a creditor, an attorney for a creditor, or an assignee of a creditor from collecting a debt in an unfair, deceptive, or unreasonable manner. For example, this arises when a creditor communicates or threatens to communicate the fact of a debt to someone other than the person who might reasonably be expected to be liable for it. A creditor also cannot communicate directly with a debtor after being notified by the debtor’s attorney that further communications related to the debt should be addressed to them. They cannot communicate with the debtor in a way that harasses or embarrasses them, such as communicating at an unreasonable hour or with unreasonable frequency, threatening violence, or using offensive language. In addition, a creditor cannot communicate with a debtor by using forms or instruments that simulate judicial process. (Related regulations also govern collection agencies in areas such as communicating with consumers and third parties, harassment or abuse, misrepresentations, and unfair practices in general.)
Section 49 provides that a violation of its provisions is an unfair or deceptive act or practice under Chapter 93A of the General Laws. Section 9 of Chapter 93A allows anyone who has been harmed by such an unlawful act or practice to bring a civil action for damages and any equitable relief that the court finds necessary and proper.
Michigan Fair Debt Collection Law
Separate but parallel laws prohibit various deceptive, abusive, or otherwise improper activities by licensed collection agencies and by certain other entities.
Michigan Compiled Laws Section 339.915 lists numerous acts that a licensed collection agency cannot commit. These include communicating with a debtor in a misleading or deceptive manner, using forms or instruments that simulate the appearance of judicial process, misrepresenting the legal rights of the creditor or debtor, making an inaccurate, misleading, untrue, or deceptive statement or claim in a communication to collect a debt, indicating that failing to pay a debt will result in arrest or imprisonment, communicating with a debtor when they are actively represented by an attorney, or communicating information related to a debtor’s indebtedness to an employer. The law further prohibits using or threatening physical violence, publishing a list of debtors, using a harassing, oppressive, or abusive method to collect a debt, or using profane or obscene language, among other things.
Section 339.915a provides some additional requirements for collection agencies in conducting their business. Section 339.916 provides a right of action to someone who was harmed by a violation of these laws. They can recover actual damages (or $50 if that is greater), unless the violation was willful, in which case they may be awarded a civil penalty of at least three times the actual damages (or $150 if that is greater), plus reasonable attorney fees and court costs.
Meanwhile, Section 445.252 prohibits certain acts by “regulated persons,” who are defined as people whose collection activities are confined and are directly related to the operation of a business other than a collection agency. These largely parallel the prohibitions in Section 339.915. Section 445.257 provides a right of action based on a violation of this law. Remedies are essentially the same as those provided by Section 339.916.
Minnesota Fair Debt Collection Law
The law covering licensing for collection agencies prohibits various deceptive or coercive practices.
Minnesota Statutes Section 332.37 prohibits a long list of activities and practices by collection agencies. For example, a collection agency cannot threaten wage garnishment or a lawsuit by a particular lawyer whom it has not retained, use or threaten to use methods of collection that violate state law, communicate with debtors in a misleading or deceptive manner by using instruments associated with lawyers or judicial process, publish a list of debtors, advertise a claim for sale as a means of forcing payment, or operate in a manner that implies that it is affiliated with the government. In addition, a collection agency cannot fail to return any overpayment from a debtor, or attempt to collect any amount that is not authorized by the agreement creating the debt or otherwise permitted by law, among other things.
Mississippi Fair Debt Collection Law
Mississippi does not specifically prohibit certain debt collection practices.
Mississippi Code Section 97-9-1 generally prohibits anyone from sending documents that simulate a form of court or legal process. Meanwhile, a federal district court in Mississippi has ruled that a debtor generally does not have a claim against a debt collector under the Mississippi Consumer Protection Act. Debtors are entitled to the rights provided by the federal FDCPA.
Missouri Fair Debt Collection Law
Missouri does not specifically prohibit certain debt collection practices, but a more general consumer protection law applies to the debt collection industry.
The Missouri Supreme Court has ruled that unfair debt collection practices can support a claim under the Missouri Merchandising Practices Act. A provision of this law, Missouri Revised Statutes Section 407.020, prohibits deception, fraud, false pretenses, false promises, misrepresentations, unfair practices, or the concealment, suppression, or omission of any material fact in connection with the sale or advertisement of any merchandise in trade or commerce. The Supreme Court cited an earlier decision explaining that the MMPA prohibits these practices if there is a relationship between a sale and an alleged unlawful action. It found that this relationship exists in a debt collection case because a sale under the MMPA is not completed until payment is received. It described collection efforts, even by a third party, as an attempt to complete the sale.
Montana Fair Debt Collection Law
Montana does not specifically prohibit certain debt collection practices, but a claim could potentially be brought under a broader consumer protection law.
The Montana Supreme Court has noted that the Montana Consumer Protection Act applies to banks engaged in consumer lending and the collection and servicing of loans. The Supreme Court also has held that a violation of federal consumer law under the federal FDCPA can constitute grounds for a violation of Montana law under the MCPA. A consumer may sue under Montana Code Section 30-14-133, a provision of the MCPA, if they have suffered any ascertainable loss of money or property as a result of an unfair or deceptive act or practice.
Nebraska Fair Debt Collection Law
A law specific to certain loans prohibits abusive or deceptive actions, while regulating communications with borrowers and third parties.
Nebraska Revised Statutes Section 45-1047 provides that a licensee under the Nebraska Installment Loan Act may not take certain actions in connection with collecting a loan. (Section 45-1004 explains who is required to be licensed under the Act.) Loans covered by this law include loans or extensions of credit to a consumer that were originated or made with an interest rate greater than the maximum interest rate allowed under Section 45-101.03 and a principal balance less than $25,000.
Prohibited actions include using or threatening violence, using obscene or profane language, engaging a person in telephone conversation at times known to be inconvenient to the borrower, falsely representing the character, amount, or legal status of a debt, falsely representing that failing to pay the debt will result in arrest or imprisonment, or threatening to take any action that the licensee knows cannot legally be taken. In addition, a licensee cannot falsely represent that the borrower committed a crime, communicate false credit information, solicit a postdated check for the purpose of threatening or instituting criminal prosecution, use a written communication that falsely represents that it was issued or authorized by a court or government agency, communicate with a borrower at their place of employment after being informed that the employer prohibits these communications, or charge or collect fees or charges that are incidental to the collection of the loan unless authorized by the loan agreement or permitted by law, among other things.
Section 45-1043 further provides that a licensee must not contact anyone outside the household of the borrower other than their spouse, their attorney, another creditor, or a credit reporting agency. Under Section 45-1046, if a borrower defaults on their promise to pay and tells the licensee in writing to stop contacting them, the licensee must limit further contacts to one notice per month by mail. A notice must not be designed to threaten action that is not otherwise permitted by law. Section 45-1058 describes claims based on violations of any of the preceding sections.
More generally, the federal district court in Nebraska has ruled that the Nebraska Consumer Protection Act may apply to debt collection agencies. A provision of this law, Section 59-1602, provides that unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are unlawful. Section 59-1609 describes the civil action for damages that may be brought under this law.
Nevada Fair Debt Collection Law
The law forbids certain types of deception, harassment, or threats by collection agencies.
Nevada Revised Statutes Section 649.375 provides that a collection agency must not use any deceptive means or representations to collect a debt, use a letter or notice that simulates a legal process or purports to be from the government, harass a debtor’s employer in collecting a claim, engage in any conduct that constitutes harassment under state regulations, threaten to advertise a claim for sale as a means to enforce payment, or publish a list of debtors, among other things. In addition, Section 649.370 provides that a violation of the federal FDCPA will be considered a violation of the state law regulating collection agencies. Section 649.355 provides more generally that a collection agency must openly, fairly, and honestly conduct its business.
New Hampshire Fair Debt Collection Law
The law prohibits a long list of unfair, deceptive, or unreasonable practices by debt collectors.
New Hampshire Revised Statutes Section 358-C:2 provides that a debt collector must not collect a debt in an unfair, deceptive, or unreasonable manner. Section 358-C:3 explains that unfair, deceptive, or unreasonable actions include using profane, obscene, or vulgar language intended to abuse the hearer or reader, contacting the debtor at their place of employment, or engaging someone in telephone conversation continuously or at unusual times or times known to be inconvenient with the intent to abuse, oppress, or harass anyone at the called number.
The law also prohibits using or threatening force or violence, threatening to take any unlawful action or an action that the debt collector does not take in the regular course of business, threatening to communicate the fact of the debt to someone other than the person who might reasonably be expected to be liable for it, making any material false representation or implication of the character, extent, or amount of the debt, indicating that an existing obligation may be increased by adding fees or charges that may not legally be added, or collecting any interest or other charge, fee, or expense incidental to the principal obligation when this is not authorized by the agreement creating the obligation and legally chargeable to the debtor. Further protections include a rule against communicating directly with the debtor after being notified by an attorney, financial counseling organization, or someone else representing the debtor that communications regarding the debt should be addressed to that person or entity. A collector also may not communicate with the debtor by using instruments that simulate judicial process or appear to be authorized or issued by the government when they are not. (The statute provides additional restrictions as well.)
Section 358-C:4 describes the remedies available for a violation of this law. It provides that a debt collector generally will be liable to the debtor for all damages caused by the violation, or for $200 plus costs and reasonable attorney fees for each violation if that is greater.
New Jersey Fair Debt Collection Law
New Jersey does not specifically prohibit certain debt collection practices.
The federal district court in New Jersey has ruled that the New Jersey Consumer Fraud Act does not apply to third-party debt collection. Debtors are entitled to the rights provided by the federal FDCPA.
New Mexico Fair Debt Collection Law
New Mexico does not specifically prohibit certain debt collection practices, but a more general consumer protection law applies.
New Mexico Administrative Code Section 12.24.2.8 generally provides that a collection agency must deal openly, fairly, and honestly in the conduct of its business. The New Mexico Unfair Trade Practices Act explicitly states that it applies to debt collection. New Mexico Statutes Section 57-12-10 describes the private right of action provided by this law. Debtors also can assert their rights under the federal FDCPA.
New York Fair Debt Collection Law
The law prohibits “principal creditors,” which are defined broadly, from taking certain types of deceptive or abusive actions.
New York General Business Law Section 601 prohibits a principal creditor or their agent from simulating a law enforcement officer or government agency representative, attempting to collect a collection fee, attorney fee, court cost, or expense that is not legally chargeable against the debtor, threatening to disclose information affecting the debtor’s reputation for creditworthiness with reason to know that the information is false, or threatening to communicate the nature of a consumer claim to the debtor’s employer before obtaining a final judgment against the debtor. The law further prohibits threatening to disclose information about the existence of a debt known to be disputed by the debtor without disclosing that fact, communicating with the debtor or a family or household member in a way that can reasonably be expected to abuse or harass the debtor, claiming a right with knowledge or reason to know that it does not exist, threatening an action that the principal creditor does not take in the usual course of their business, or using a communication that simulates legal or judicial process, among other things.
Section 600 defines a principal creditor as a person, firm, corporation, or organization to whom a consumer claim is owed or asserted to be owed, or any assignee for value of such a person or entity. Section 602 provides that a violation of this law is a misdemeanor.
North Carolina Fair Debt Collection Law
Several statutes prohibit threats, coercion, harassment, abuse, deception, publicizing information about the debt, and unfair practices more generally.
North Carolina General Statutes Section 58-70-95 prohibits various forms of threats and coercion by collection agencies. These include using or threatening violence, threatening to accuse someone of fraud or a crime, threatening to accuse someone of conduct that would tend to cause disgrace or ridicule, threatening to make false accusations that a consumer has not paid a just debt, claiming that failing to pay the debt may result in arrest, or threatening to take any action not permitted by law, among other things.
Section 58-70-100 further prohibits using conduct of which the natural consequence is to oppress, harass, or abuse someone. This includes using profane or obscene language, engaging someone in a telephone conversation with unreasonable frequency or at times known to be outside normal waking hours, or attempting to communicate with someone at their place of employment, contrary to their instructions, among other things.
In addition, Section 58-70-105 provides that a collection agency must not unreasonably publicize information about a consumer’s debt. This includes communicating with someone other than the debtor, their spouse, or their attorney unless certain exceptions apply, or publishing a list of consumers, among other things.
Section 58-70-110 covers fraudulent, deceptive, or misleading representations. These include failing to disclose that a communication is from a debt collector, falsely representing the character, extent, or amount of a debt, falsely representing that the collection agency is connected with the government, using a written communication that simulates a court-approved document, or falsely representing that an existing obligation of the consumer may be increased by adding attorney fees, investigation fees, service fees, or other fees or charges, among other things.
Finally, Section 58-70-115 prohibits a collection agency from using unfair practices. These include attempting to collect part or all of the collection agency’s fee or charge for services rendered, attempting to collect any charge, fee, or expense incidental to the principal debt unless the collection agency is legally entitled to it, communicating with a consumer after being notified by the consumer’s attorney that they represent the consumer, or getting a waiver of any legal rights of the debtor without disclosing the nature and consequences of the waiver, among other things.
Section 58-70-130 imposes civil liability for violations. A collection agency will be liable to a debtor for any actual damages that they sustained due to the violation, as well as a penalty in an amount determined by the court between $500 and $4,000 for each violation.
North Dakota Fair Debt Collection Law
The statute governing collection agencies does not specifically prohibit certain practices, but related regulations list numerous prohibitions.
North Dakota Century Code Chapter 13-05, which regulates collection agencies, does not explicitly list prohibited practices involving their interactions with debtors. However, the regulations in the North Dakota Administrative Code provide numerous prohibitions. For example, Section 13-04-02-02 prohibits a collection agency or debt collector from publishing a list of debtors, using similar methods of intimidation, or communicating with debtors in a misleading manner that resembles judicial process, among other things. Section 13-04-02-04 prohibits a debt collector from falsely representing that they are an attorney, communicating with debtors in the name of an attorney, or making a demand for money that is a share of compensation for services performed by an attorney in collecting a debt, among other things.
Section 13-04-02-05 prohibits threats or coercion, such as using or threatening violence, threatening to accuse someone of fraud or another crime or disgraceful conduct, falsely accusing a debtor of willfully refusing to pay a just debt, or indicating that failing to pay the debt will result in arrest or imprisonment. Section 13-04-02-06 covers harassment and abuse, which includes using profane or obscene language, making phone calls without disclosing the caller’s true identity, or engaging someone in phone conversation repeatedly, continuously, or at unusual times or times known to be inconvenient. Section 13-04-02-07 prohibits unreasonably publicizing information related to the debtor or debt, including communicating this information to a family member other than the debtor’s spouse, publishing a list of debtors, or communicating information related to the debt to the employer.
Section 13-04-02-08 prohibits fraudulent, deceptive, or misleading representations or means, such as making misleading representations in any communication, falsely implying that a debt collector is affiliated with the government, using a name other than the debt collector’s true name, falsely representing the character, extent, or amount of a debt, using a written communication that simulates a court-approved document, or indicating that an existing obligation may be increased by various fees or charges when these may not legally be added to it. Finally, Section 13-04-02-09 prohibits unfair or unconscionable means, such as getting a written statement affirming an obligation by a debtor who has been declared bankrupt without disclosing the nature and consequences of the affirmation, attempting to collect part or all of the debt collector’s fee or charge for their services, communicating with a debtor when it appears that they are represented by an attorney, or attempting to collect a charge, fee, or expense incidental to the principal obligation unless this is authorized by law or the agreement creating the obligation.
Ohio Fair Debt Collection Law
A law on short-term loan debt collection provides detailed rules, and a broader consumer protection law has been found to cover debt collection.
Ohio Revised Code Section 1319.12 provides certain rules for collection agencies in the context of litigation and certain other limited issues, but it does not prohibit specific practices. On the other hand, Section 1321.45 prohibits numerous practices related to short-term loan debt collection. Among other things, a debt collector cannot communicate with anyone other than the borrower’s attorney once they know that they are represented by an attorney regarding the debt. They also cannot communicate with the borrower at an unusual time or place or a time or place that should be known to be inconvenient (presumed to be 9 P.M. to 8 A.M.), or communicate with the borrower at their place of employment if they know or have reason to know that the employer prohibits the borrower from receiving these communications. If a borrower provides written notification that they refuse to pay a debt or that they want the debt collector to cease further communication, the debt collector generally must not communicate further with the borrower, with some exceptions.
Section 1321.45 also prohibits various forms of harassing or abusive conduct, such as using or threatening violence, using obscene or profane language, publishing a list of borrowers who allegedly refuse to pay debts, or repeatedly or continuously engaging someone in telephone conversation with the intent to abuse or harass them. In addition, a debt collector may not use false, deceptive, or misleading representations or means, such as implying that they are affiliated with the government, falsely implying that documents are legal process, falsely representing the character, amount, or legal status of a debt, using a written communication that simulates a court-approved document, indicating that failing to pay the debt will result in arrest or imprisonment, falsely implying that the borrower committed a crime or disgraceful conduct, or threatening to take an action that cannot legally be taken.
Finally, Section 1321.45 prohibits unfair or unconscionable means of collection, such as collecting a fee, charge, or expense incidental to the principal obligation if this is not legally permitted or authorized by the agreement creating the debt, soliciting a postdated check for the purpose of threatening criminal prosecution, threatening to deposit a postdated check prior to the date on the check, or communicating with a borrower by postcard.
Moreover, the Ohio Supreme Court has ruled that the Ohio Consumer Sales Practices Act provides protections for consumer debtors against debt collectors and their attorneys. Some of the key provisions of this law include Section 1345.02 on unfair or deceptive acts or practices and Section 1345.03 on unconscionable acts or practices. Section 1345.09 provides a private cause of action for a violation of the OCSPA and describes the remedies that may be available.
Oklahoma Fair Debt Collection Law
There is no specific fair debt collection law prohibiting certain practices, but debtors are protected (at least somewhat) under a broader consumer protection law.
Oklahoma Statutes Section 15-753, part of the Oklahoma Consumer Protection Act, describes two specific practices in which debt collectors must not engage. These are when a debt collector contacts a debtor and threatens to file an action against them over a debt for which the statute of limitations has passed, and when a debt collector contacts a debtor and uses obscene or profane language to collect a debt. The inclusion of these practices in the consumer protection law suggests that it applies to debt collection, but at least one court has interpreted the law to prohibit only those two practices by collectors. Section 15-761.1 describes the private right of action created by the Consumer Protection Act and the remedies that may be available.
The Oklahoma Small Lenders Act also has a general rule against unfair or deceptive acts or practices in the conduct of businesses covered by this law.
Oregon Fair Debt Collection Law
The law prohibits many types of abuse, harassment, and deceptive practices.
Oregon Revised Statutes Section 646.639 prohibits numerous collection practices, such as using or threatening force or violence, threatening arrest or criminal prosecution, using profane, obscene, or abusive language in communicating with a debtor or their family, or communicating with the debtor or their family member repeatedly or continuously or at times known to be inconvenient with the intent to harass or annoy them. A debt collector also cannot threaten to communicate with a debtor’s employer about the nature or existence of the debt, threaten to communicate with the debtor at their place of employment (with some exceptions), threaten to enforce a right or remedy while having reason to know that the right or remedy does not exist, or threaten to take an action that the collector does not take in the regular course of business.
In addition, Section 646.639 prohibits using a form of communication that simulates legal or judicial process, representing that an existing debt may be increased by the addition of fees or charges that may not legally be added, collecting charges or fees that exceed the actual debt unless allowed by law or authorized by the instrument creating the debt, or filing an action to collect a debt despite knowing that it is barred by the statute of limitations, among other things. Further rules apply to debt buyers and debt collectors acting on behalf of debt buyers.
Section 646.641 provides that someone injured by the willful use of an unlawful collection practice may bring an action to enjoin the practice or recover actual damages, or $200 if that is greater. Punitive damages also may be available, as well as reasonable attorney fees. A one-year statute of limitations applies.
Pennsylvania Fair Debt Collection Law
A criminal law prohibits a limited set of practices, while a broader law describes prohibited activities by debt collectors and creditors separately.
18 Pennsylvania Statutes Section 7311 makes it unlawful for a collector to collect any fee, charge, or expense incidental to the principal obligation unless this is expressly provided in the agreement creating the debt or is permitted by law. This law also makes it unlawful for a collection agency to coerce or intimidate a debtor by sending them a document that simulates court process, or to threaten legal proceedings against a debtor.
Meanwhile, the Fair Credit Extension Uniformity Act more generally describes unfair or deceptive acts or practices regarding debt collection. A provision in this law, 73 Pennsylvania Statutes Section 2270.4, provides that it is an unfair or deceptive debt collection act or practice under state law if a debt collector violates any of the provisions of the federal FDCPA. A much longer list of prohibitions applies to debt collection activities by creditors. For example, they must not communicate with a consumer at an unusual time or place or at a time or place that should be known to be inconvenient, they must not communicate with a consumer if they know that the consumer is represented by an attorney regarding the debt, and they must not communicate with the consumer at their place of employment if they have reason to know that the employer prohibits the consumer from receiving these communications. In general, a creditor must not communicate with anyone other than the consumer, their attorney, a debt collector, their attorney, the creditor’s attorney, or a consumer reporting agency about the debt.
Further activities in which creditors must not engage include various types of harassment or abuse, such as using or threatening violence, using obscene or profane language, publishing a list of consumers who allegedly refuse to pay debts, or engaging someone in a telephone conversation repeatedly or continuously with the intent to annoy, abuse, or harass anyone at the called number. Prohibited activities by creditors also include false, deceptive, or misleading representations or means, such as implying that they are affiliated with the government, misrepresenting the character, amount, or legal status of a debt, indicating that failing to pay the debt will result in arrest or imprisonment, falsely representing that the consumer committed a crime, using a document that simulates a court-approved document, or threatening to take an action that cannot legally be taken. The statute further prohibits unfair or unconscionable means of debt collection, such as soliciting a postdated check for the purpose of threatening criminal prosecution, threatening to deposit a postdated check prior to the date on the check, or collecting a fee, charge, or expense incidental to the principal obligation unless this is authorized by the agreement creating the debt or permitted by law.
Section 2270.5 of this law provides that an unfair or deceptive debt collection act or practice is a violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law. A two-year statute of limitations applies to claims based on a violation.
Rhode Island Fair Debt Collection Law
The law limits communications from collectors, while forbidding various forms of harassment, abuse, misrepresentations, and unfair or unconscionable practices.
Rhode Island General Laws Section 19-14.9-5 restricts communications between a debt collector and a consumer. For example, a debt collector may not communicate with a consumer at an unusual time or place or a time or place that should be known to be inconvenient to the consumer. They also cannot communicate with the consumer if they know that the consumer is represented by an attorney regarding the debt, and they cannot communicate with the consumer at their place of employment if they have reason to know that the consumer’s employer prohibits them from receiving these communications. In general, a debt collector cannot communicate with anyone other than the consumer, their spouse, their attorney, the creditor, their attorney, the debt collector’s attorney, or a consumer reporting agency. If the consumer tells the debt collector in writing that they refuse to pay the debt or that they want the debt collector to cease communications, the debt collector must stop communicating with the consumer, with some exceptions.
Section 19-14.9-6 prohibits certain harassing or abusive practices, such as using or threatening violence, using obscene or profane language, placing phone calls without meaningful disclosure of the caller’s identity, or engaging someone in phone conversations repeatedly or continuously with the intent to annoy, abuse, or harass. Section 19-14.9-7 covers false, deceptive, or misleading representations, such as implying that the debt collector is affiliated with the government, misrepresenting the character, amount, or legal status of a debt, indicating that failing to pay the debt will result in arrest or imprisonment, threatening to take an action that cannot legally be taken, implying that the consumer committed a crime or other disgraceful conduct, threatening to communicate false credit information to someone else, or falsely implying that documents are legal process, among other things.
Finally, Section 19-14.9-8 prohibits various unfair or unconscionable means of collecting a debt, such as collecting an amount that is not expressly authorized by the agreement creating the debt or permitted by law, publishing the name of a consumer or lists of consumers, threatening to deposit a postdated check before the date on the check, indicating that an existing obligation of a consumer may be increased by the addition of various fees or charges if these may not legally be added to the existing obligation, or soliciting a written statement containing an affirmation of any obligation by a consumer who has been declared bankrupt without disclosing the nature and consequences of the affirmation.
Section 19-14.9-13 provides remedies for violations of this law. Among other things, a debt collector will be civilly liable to a consumer for any actual damages, additional damages up to $1,000, and the costs of the action together with reasonable attorney fees.
South Carolina Fair Debt Collection Law
The law allows consumers to hold collectors accountable for unconscionable conduct and lists factors that may indicate that this standard is met.
South Carolina Code of Laws Section 37-5-108 provides that a court may grant an injunction if it finds that a person has engaged in, is engaging in, or is likely to engage in unconscionable conduct in collecting a debt arising from a consumer credit transaction. The consumer also can recover actual damages and a penalty between $100 and $1,000, as determined by a court.
The statute proceeds to list various factors that may support a finding that conduct is unconscionable. These include using or threatening force or violence, threatening criminal prosecution, or communicating with the consumer at unusual hours or under other circumstances in which it is reasonable to infer that the primary purpose was to harass the consumer.
The statute proceeds to prohibit a creditor or debt collector from communicating with a consumer at a time or place that should be known to be inconvenient to the consumer, communicating with a consumer who is represented by an attorney, contacting a consumer at their place of employment when the consumer or the employer has requested in writing that no contacts be made, or communicating with someone other than the consumer, their attorney, the attorney of the creditor or debt collector, or a consumer reporting agency. Other actions forbidden by the statute include using obscene or profane language, publishing a list of consumers who allegedly refuse to pay debts, engaging a person in a telephone conversation with the intent to annoy, and threatening to deposit a postdated check before the date on the check, among others.
Factors that may support a finding that conduct is unconscionable also may include fraudulent, deceptive, or misleading representations, such as misrepresentations concerning the character, amount, or legal status of a debt, an implication that failing to pay a debt will result in arrest or imprisonment, an implication that the consumer committed a crime or disgraceful conduct, or a communication that simulates a court-approved document.
The statute provides a handful of other factors, such as threatening to damage the consumer’s reputation or economic status by disclosing false information affecting their reputation for creditworthiness, communicating with the consumer’s employer before getting a final judgment against the consumer, or disclosing information affecting the consumer’s credit or other reputation to someone who does not have a legitimate business need for the information.
South Dakota Fair Debt Collection Law
A law governing “money lending licensees” prohibits harassment, abuse, false statements, and other unscrupulous practices.
South Dakota Codified Laws Section 54-4-77 applies to people employed by money lending licensees to collect debts. (Section 54-4-40 provides that anyone engaged in the business of lending money, which is defined broadly, must apply for a license.) Section 54-4-77 prohibits harassing or abusing a borrower, such as by using a threat of violence or harm, publishing a list of names of borrowers who refuse to pay their debts, using obscene or profane language, or repeatedly using the phone with the intent to annoy borrowers. It also prohibits using false statements when attempting to collect a debt, such as claiming that the borrower has committed a crime, misrepresenting the amount that the borrower owes, claiming to be an attorney or a government representative, or indicating that the borrower will be arrested if the debt is not paid.
Further prohibited practices under this law include giving false credit information about the borrower to anyone, depositing a post-dated check early, threatening to take the borrower’s property unless it can be done legally, or trying to collect fees or charges in addition to the amount that a borrower owes unless this is allowed by state law or the contract that created the debt.
Tennessee Fair Debt Collection Law
There is no specific statute prohibiting certain practices, but Collection Service Board regulations impose numerous requirements.
The Tennessee Collection Service Act does not explicitly list certain prohibited practices, but a provision of this law at Tennessee Code Section 62-20-115 states that violating any rule promulgated by the Tennessee Collection Service Board may result in the suspension or revocation of a debt collector’s license. The Collection Service Board has imposed numerous regulations for interactions between collectors and consumers.
For example, Tennessee Rules & Regulations Section 0320-05-.03 covers communications related to debt collection. It provides that a collector cannot communicate with a consumer at an unusual time or place or a time or place that should be known to be inconvenient, communicate with a consumer known to be represented by an attorney regarding the debt, or communicate with a consumer at their place of employment if the collector has reason to know that the consumer’s employer prohibits these communications. A collector also generally must not communicate with anyone other than the consumer, their attorney, the creditor, their attorney, the collector’s attorney, or a consumer reporting agency. If the consumer tells the collector that they refuse to pay a debt or want the collector to stop communications, the collector generally must stop communicating with the consumer, with some exceptions.
Section 0320-05-.04 covers harassment and abuse by collectors. Among other things, it prohibits using or threatening violence, using obscene or profane language, publishing a list of consumers who allegedly refuse to pay debts, or engaging a person in telephone conversation repeatedly or continuously with the intent to annoy, abuse, or harass someone at that number.
Section 0320-05-.05 covers many types of false or misleading representations, such as implying that the collector is affiliated with the government, misrepresenting the character, amount, or legal status of a debt, implying that failing to pay a debt will result in arrest or imprisonment, threatening to take an action that cannot legally be taken, implying that the consumer committed a crime, threatening to communicate false credit information to someone else, or using a written communication that simulates a court-approved document, among other things.
Section 0320-05-.06 covers unfair or unconscionable means used to collect a debt. These include collecting an amount that is not authorized by the agreement created by the debt or permitted by law, soliciting a postdated check for the purpose of threatening criminal prosecution, threatening to deposit a postdated check before the date on the check, or communicating with a consumer by postcard, among other things.
Section 0320-05-.10 broadly provides that a violation of these rules will be considered an unfair or deceptive act or practice in violation of the Tennessee Collection Service Act.
Texas Fair Debt Collection Law
The law prohibits numerous forms of threats, coercion, harassment, abuse, deception, and unfair or unconscionable means of collection.
Texas Statutes Section 392.301 prohibits various types of threats or coercion by a debt collector. These include using or threatening to use violence, threatening to falsely accuse someone of fraud or another crime, threatening to represent to someone else that the consumer is willfully refusing to pay a non-disputed debt when the debt is disputed, threatening that the debtor will be arrested for failing to pay a debt, threatening to file a charge against a debtor who has not violated a criminal law, or generally threatening to take an action prohibited by law.
Meanwhile, Section 392.302 covers harassment and abuse. This includes using profane or obscene language, placing phone calls without disclosing the name of the person making the call and with the intent to annoy, harass, or threaten someone at the called number, or making repeated or continuous phone calls with the intent to harass someone at the called number, among other things.
Section 392.303 further prohibits unfair or unconscionable means of collecting a debt. These include collecting a charge, fee, or expense incidental to the obligation unless this is authorized by the agreement creating the obligation or legally chargeable to the consumer, as well as getting a written statement specifying that a consumer’s obligation was incurred for necessities of life if this is not true.
Finally, Section 392.304 prohibits numerous fraudulent, deceptive, or misleading representations. These include misrepresenting the character, extent, or amount of a debt, falsely representing that the debt collector is affiliated with the government, using a written communication that simulates a court-approved document, claiming that a debt may be increased by adding certain fees or charges when this is not authorized by a written contract or statute, or misrepresenting the nature of the services rendered by the debt collector, among other practices. The statute also generally prohibits using any false representation or deceptive means to collect a debt or get information about a consumer.
Section 392.403 allows a consumer to sue for injunctive relief to prevent or restrain a violation of one of these rules, as well as actual damages sustained due to a violation. If they prevail in this action, they are also entitled to reasonable attorney fees and costs.
Utah Fair Debt Collection Law
There is no law specific to fair debt collection practices, but debtors are shielded by a broader consumer protection law.
Utah Code Section 13-11-4 in the Utah Consumer Sales Practices Act provides that a deceptive act or practice by a “supplier” in connection with a consumer transaction violates the Act whether it occurs before, during, or after the transaction. Section 13-11-5 provides a similar rule for unconscionable acts or practices. Section 13-11-3 defines “supplier” to include anyone who regularly enforces consumer transactions. The federal district court in Utah has ruled that the UCSPA applies to collection agencies and debt collection actions.
Section 13-11-19 provides that a consumer can bring an action to obtain a declaratory judgment that an act or practice violates this law and enjoin a supplier who has violated, is violating, or is likely to violate the law. It also provides that a consumer who suffers a loss due to a violation of the law may recover actual damages, or $2,000 if that is greater, plus court costs.
Vermont Fair Debt Collection Law
Rules based on the consumer protection law prohibit practices involving threats, coercion, improper disclosures, misrepresentations, and more.
9 Vermont Statutes Section 2453, a provision in the state consumer protection law, authorizes the Vermont Attorney General to adopt rules related to unfair or deceptive acts or practices in commerce. Under that authority, the Attorney General has adopted Vermont Code of Rules Section 06 031 004, also known as Consumer Protection Rule 104. Section 104.01 prohibits unfair threats or coercion, such as using or threatening violence, falsely accusing someone of fraud or another crime, or threatening to falsely accuse that a consumer is willfully refusing to pay a just debt. Section 104.02 covers harassment and abuse, such as using profane or obscene language, making phone calls to the debtor without disclosing the name of the business or company represented by the debt collector, making phone calls to anyone at their place of employment contrary to their instructions, or engaging someone in phone conversation with unreasonable frequency or at times known to be outside the person’s waking hours.
Meanwhile, Section 104.03 prohibits unreasonably publicizing information related to a debt, such as communicating information related to the debt to an employer, disclosing the information to a family member of the debtor other than their spouse, threatening that failing to pay an alleged claim will result in arrest, or threatening to take any action not taken in the usual course of business unless it was actually intended to be taken in the case at issue. Section 104.04 covers false, fraudulent, deceptive, or misleading representations. These include a false representation of the character, extent, or amount of a claim, a false representation that the debt collector is affiliated with the government, the use of a written communication that simulates a court-approved document, a representation that an existing obligation of the debtor may be increased by the addition of various fees or charges that may not legally be added, or a false representation about the nature of the debt collector or their business, among other things.
Finally, Section 104.05 prohibits the use of unfair or unconscionable means in debt collection. These include getting a waiver of any legal right of a debtor without disclosing the nature and consequences of the waiver, collecting a charge, fee, or expense incidental to the principal obligation unless this is authorized by the agreement creating the obligation or legally chargeable to the debtor under state law, or collecting from the debtor part or all of the debt collector’s fee or charge for services rendered, among other practices.
Section 2453(d) of the consumer protection law provides that a violation of a rule adopted by the Attorney General is prima facie proof of the commission of an unfair or deceptive act in commerce. Section 2461 gives a right of action to a consumer who sustains damages as a result of any false or fraudulent representations or practices prohibited by Section 2453 or a rule made pursuant to Section 2453. They can sue for equitable relief and damages.
Virginia Fair Debt Collection Law
Virginia has almost no rules specific to debt collection, and third-party collectors may be exempt from the general consumer protection law as well.
Virginia Code Section 18.2-213 prohibits anyone from knowingly delivering, mailing, sending, or otherwise using a document that simulates various types of legal documents when they are trying to collect money.
Section 59.1-200 in the Virginia Consumer Protection Act prohibits numerous practices in connection with consumer transactions, including deception, fraud, false pretenses, false promises, and misrepresentations. However, Section 59.1-199 provides that the Act does not apply to aspects of a consumer transaction that are regulated by the federal Consumer Credit Protection Act, and the federal FDCPA is a subchapter of that law. Thus, debt collectors who are governed by the FDCPA may be exempt from the Virginia law, although creditors collecting their own debts may be subject to the Virginia law because the FDCPA does not apply to them.
Washington Fair Debt Collection Law
The law lists many prohibited practices by collection agencies, including various types of misrepresentations, threats, abuse, and harassment.
Revised Code of Washington Section 19.16.250 prohibits nearly 30 types of practices by collection agencies. These include publishing a list of debtors, making statements that might be interpreted as indicating an affiliation with the government, advertising a claim for sale as a way to enforce payment, threatening the debtor with impairment of their credit rating if a claim is not paid, or communicating with the debtor after receiving notification in writing from their attorney that further communications should be addressed to the attorney. Prohibited practices also include communicating with a debtor at an unreasonable hour or with unreasonable frequency, threatening force or violence, threatening criminal prosecution, using offensive language, using instruments that simulate judicial process, implying that the existing obligation may be increased by adding fees or charges that may not legally be added, or threatening to take any action against the debtor that cannot legally be taken.
Section 19.16.440 provides that these prohibited practices are unfair acts or practices under the general consumer protection law. (Section 19.86.020 in that law provides that unfair or deceptive acts or practices in the conduct of trade or commerce are unlawful.)
Washington, D.C. Fair Debt Collection Law
A detailed law prohibits many types of threats, coercion, harassment, abuse, deceptive and misleading representations, and unfair or unconscionable means.
District of Columbia Code Section 28-3814 covers conduct and practices connected to the collection of obligations arising from consumer debt. The statute prohibits threats and coercion by debt collectors, such as using or threatening violence, falsely accusing someone of a crime or disgraceful conduct, making a false accusation that a consumer has not paid a just debt, threatening that failing to pay the debt will result in arrest, threatening an action that a debt collector cannot legally take, disclosing false information affecting the consumer’s reputation for creditworthiness, or disclosing the consumer’s citizenship status.
In addition, the statute prohibits harassment and abuse by debt collectors, including using profane or obscene language, placing telephone calls without disclosing the caller’s identity, communicating with the consumer or a family member at an unreasonable hour or with unreasonable frequency, threatening to visit the consumer’s household for the purpose of collecting a debt, or threatening to visit the consumer’s place of employment at any time. Another provision covers prohibited disclosures by debt collectors, such as communicating information related to the debt to the consumer’s employer or a relative or friend, or publishing a list of consumers with information about their debts.
The statute also prohibits using unfair, fraudulent, deceptive, or misleading representations, devices, or practices during debt collection. These include using a company name other than the company name of the original creditor or debt collector, misrepresenting the character, extent, or amount of a debt, falsely indicating that the debt collector is affiliated with the government, using a document that simulates a court-approved document, indicating that an existing obligation of the consumer may be increased by adding any fees or charges that may not legally be added, or bringing an action to collect a debt when the debt collector should know that the statute of limitations has expired, among other things.
Furthermore, the statute lists unfair or unconscionable means that must not be used in collecting a debt. These include getting an affirmation of an obligation by a bankrupt consumer without disclosing the nature and consequences of the affirmation, collecting a charge, fee, or expense that is incidental to the principal obligation unless this is authorized by law or the agreement creating the obligation, or communicating with a consumer when they have told the creditor that they are represented by an attorney. The statute also contains other miscellaneous provisions, such as a rule against contacting a consumer between 9 P.M. and 8 A.M.
A debt collector that violates this law may be liable to the consumer for actual damages, costs, reasonable attorney fees, punitive damages, a penalty between $500 and $4,000 per violation, and any other relief that the court finds proper.
West Virginia Fair Debt Collection Law
A broad law prohibits debt collection practices involving threats, coercion, abuse, certain information disclosures, misrepresentations, and unfair or unconscionable means.
West Virginia Code Section 46A-2-124 prohibits threats or coercion by debt collectors. This includes using or threatening violence, threatening to accuse someone of a crime or disgraceful conduct, making a false accusation that a consumer is willfully refusing to pay a just debt, or threatening that failing to pay an alleged claim will result in arrest. Section 46A-2-125 further prohibits oppressing or abusing a consumer. Among other things, this may involve using profane or obscene language, engaging a person in phone conversation without disclosing the caller’s identity and with the intent to annoy, harass, or threaten any person at the called number, or calling a person more than 30 times per week or engaging a person in phone conversation more than 10 times per week (or at unusual or inconvenient times) with the intent to annoy, abuse, oppress, or threaten someone at the called number.
Meanwhile, Section 46A-2-126 prohibits unreasonably publicizing information related to a debt. Among other things, this may involve telling an employer about a debt before judgment has been rendered, disclosing a debt to a relative or family member of the consumer who does not live with them, or publishing a list of consumers that contains information about their debts. Section 46A-2-127 covers fraudulent, deceptive, or misleading representations or means. Among other things, these may include using a different business name than the true name of the collector’s business, falsely representing the character, extent, or amount of a claim, falsely implying that a debt collector is affiliated with the government, using a document that simulates a court-approved document, or indicating that an existing obligation of the consumer may be increased by adding fees or charges that may not legally be added to it.
Section 46A-2-128 covers unfair or unconscionable means of collection. Among other things, these may include getting an affirmation of an obligation by a bankrupt consumer unless this is obtained pursuant to applicable bankruptcy law, attempting to collect from the consumer part or all of the debt collector’s fee or charge for services rendered, attempting to collect a charge, fee, or expense that is incidental to the principal obligation unless this is authorized by the agreement creating or modifying the obligation and by statute or regulation, or communicating with a consumer more than three business days after the debt collector receives written notice from the consumer or their attorney that the consumer is represented by an attorney regarding the debt. Finally, Section 46A-2-129a specifically provides that a debt collector must not communicate by phone with a consumer or third party at any place, including a workplace, while falsely stating that the call is urgent or an emergency.
Section 46A-5-101 provides that a consumer may bring an action based on any prohibited debt collection practice. They can recover actual damages and a penalty of $1,000 per violation, although the aggregate amount of the penalty must not exceed the total alleged outstanding indebtedness, or $175,000 if that is greater.
Wisconsin Fair Debt Collection Law
The law prohibits various forms of threats, abuse, harassment, deception, and improper disclosures or communications by debt collectors.
Wisconsin Statutes Section 427.104 lists numerous prohibited practices by debt collectors, such as using or threatening force or violence, using obscene or threatening language, threatening criminal prosecution, disclosing false information adversely affecting the consumer’s reputation for creditworthiness, initiating communication with the consumer’s employer before getting a final judgment against the consumer, or communicating with the consumer or a person related to them in a manner that can reasonably be expected to threaten or harass the consumer. Prohibited practices also include threatening to enforce a right with reason to know that the right does not exist, using a communication that simulates legal or judicial process, disclosing information concerning the existence of a debt known to be reasonably disputed by the consumer without disclosing that the consumer disputes the debt, or disclosing information affecting the consumer’s reputation to someone other than the consumer or their spouse with reason to know that the other person does not have a legitimate business need for it.
Section 427.105 provides that a person harmed by a violation of this law may recover damages, including damages caused by emotional distress or mental anguish even if these are not accompanied by a physical injury. They may recover the penalty described in Section 425.304 as well.
Wyoming Fair Debt Collection Law
A handful of regulations provide basic rules for collection agencies, which also may be covered by the general consumer protection law.
The statutes regulating debt collectors do not prohibit specific practices, but the Wyoming Collection Agency Board has enacted a handful of relevant regulations. These include a general ethical conduct rule, which requires that a collection agency deal openly, fairly, and honestly in the conduct of its business. Another rule prohibits publishing or threatening to publish a list of consumers who allegedly refuse to pay their debts. The Collection Agency Board also prohibits using methods of intimidation to collect a debt. A final related regulation explicitly adopts the federal FDCPA.
A provision in the general consumer protection law, Wyoming Statutes Section 40-12-105, broadly prohibits engaging in unfair or deceptive acts or practices in the course of business and in connection with a consumer transaction. This seems likely to cover debt collection. Section 40-12-108 provides that someone who had relied on an uncured unlawful deceptive trade practice may bring an action for the damages that they actually suffered as a consumer as a result of the unlawful deceptive trade practice.
Last reviewed August 2023
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