Laws Regarding Credit and Debt in Kentucky
Legal information reviewed and current as of July 2026.
The laws regarding credit and debt in Kentucky are governed by the Kentucky Revised Statutes (KRS). Some of the most important laws include:
- The Fair Debt Collection Practices Act (FDCPA): The FDCPA is a federal law that regulates the conduct of debt collectors. It prohibits debt collectors from engaging in abusive, deceptive, or unfair practices.
- The Kentucky Consumer Protection Act (KCPA): The KCPA is a state law that protects consumers from unfair and deceptive trade practices. It applies to all businesses, including debt collectors.
- The Kentucky Statute of Limitations on Debt: Kentucky’s statute of limitations on debt is 5 years for oral contracts (KRS 413.120). For written contracts, it depends on when the contract was signed: contracts executed after July 15, 2014 have a 10-year limit (KRS 413.160), while older contracts signed before that date retain the previous 15-year limit (KRS 413.090). This means that a creditor generally cannot sue to collect a debt older than the applicable statute of limitations.
- The Kentucky Debt Adjustment Act: The Kentucky Debt Adjustment Act regulates debt-adjusting companies. Debt-adjusting companies are businesses that help people consolidate their debts or negotiate lower payments with their creditors.
If you are having trouble with debt, there are a number of resources available to help you. You can contact the Kentucky Attorney General’s Office for information about your rights and to file a complaint against a debt collector. You can also contact a nonprofit credit counseling agency for help in managing your debt.
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