Important facts regarding debts placed with Indiana credit/collection service companies

26 March , 2023

  • Statute of Limitations: The statute of limitations for debt collection in Indiana is six years for written contracts and two years for oral contracts. This means that a debt collection agency cannot take legal action to collect a debt that is older than these time frames.
  • Fair Debt Collection Practices Act (FDCPA): Indiana follows the federal FDCPA, which outlines the rights of consumers in debt collection practices. This includes protecting consumers from harassing or abusive collection tactics, as well as requiring debt collectors to provide accurate information about the debt being collected.
  • Validation of Debts: Debt collection agencies must provide written validation of the debt within five days of initial contact with the consumer. This validation must include the amount of the debt, the name of the original creditor, and the right to dispute the debt.
  • Ceasing Communication: A consumer can request that a debt collection agency cease communication with them by sending a written request. Once this request is received, the debt collection agency can only communicate with the consumer to confirm the request or to advise that legal action will be taken.
  • Credit Reporting: Negative information about a debt can only be reported on a consumer’s credit report for seven years from the date of last activity on the debt. After seven years, the information must be removed from the credit report.
  • License Requirements: Debt collection agencies operating in Indiana must be licensed by the state and adhere to all relevant state and federal laws and regulations.
  • Legal Action: Debt collection agencies may take legal action to collect a debt, but must follow all state and federal laws and regulations, including the FDCPA. If a debt collection agency takes legal action, the consumer has the right to contest the suit and present evidence in their defense.

It’s important to understand your rights as a consumer in debt collection practices and to be informed about the laws and regulations that govern debt collection in Indiana. If you feel that your rights have been violated, you can file a complaint with the Indiana Attorney General’s office or the Federal Trade Commission.

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