Hawaii Debt Collection Laws: What Collectors Can't Do to You

Your phone rings for the fourth time today. Same unknown number. You already know it's a debt collector. In Hawaii, collectors operate under two layers of law: federal protections that apply nationwide, plus specific Hawaii statutes designed to curb harassment and fraud.

Understanding these rules gives you leverage. When a collector breaks them—and they often do,you can file complaints, demand they stop, or even sue for damages. This guide covers both federal and Hawaii-specific debt collection laws, plus what to do when collectors cross the line.

Federal Law: Your Baseline Protection

The Fair Debt Collection Practices Act (FDCPA) applies to third-party collection agencies operating anywhere in the U.S., including Hawaii. It does not cover original creditors collecting their own debts, but most consumer debts get sold or assigned to agencies that must follow FDCPA rules.

What Debt Collectors Cannot Do Under Federal Law

• Call before 8 a.m. Or after 9 p.m. Hawaii time. The law uses your local time zone, not the collector's.
• Contact you at work if you've told them your employer prohibits it. Tell them once, in writing, and they must stop workplace calls.
• Discuss your debt with third parties. They can contact your employer to verify employment, but cannot mention the debt. Family and friends are off-limits unless they're helping locate you.
• Use profanity or threats. This includes threats of arrest, violence, or harm to your reputation.
• Lie about the debt amount, their identity, or legal consequences. Falsely claiming to be an attorney or saying you'll be arrested is illegal.
• Continue calling after you send a cease-and-desist letter. Once you request in writing that they stop contacting you, they can only reach out to confirm they're stopping or to notify you of specific legal action.

Violations carry consequences. You can sue a collector within one year of the violation and recover up to $1,000 in statutory damages, plus actual damages (like lost wages) and attorney fees.

Hawaii's Debt Collection Laws: Chapter 443B

Hawaii Revised Statutes Chapter 443B imposes state-level requirements on collection agencies. Some rules mirror federal law; others go further.

Registration and Licensing

Every collection agency operating in Hawaii must register with the state and renew that registration by June 30 each year. An unlicensed agency cannot legally collect debts in Hawaii. If paperwork arrives from a collector and you're unsure whether they're legitimate, check the Hawaii Department of Commerce and Consumer Affairs (DCCA) Professional and Vocational Licensing Division database.

Prohibited Conduct

Hawaii law (§443B-15) bans specific tactics:

• Threats or coercion. This includes threats of violence, damage to your reputation, criminal prosecution, or using profane language.
• False representations. Collectors cannot lie about the debt, their identity, your legal obligations, or the consequences of nonpayment.
• Impersonation. Unlicensed individuals or companies cannot send documents suggesting they are legitimate debt collectors.

Violations can result in fines up to $5,000 per offense under §443B-14. If a collector is operating without a license, they may also face criminal penalties.

Recordkeeping Requirements

Hawaii agencies must maintain permanent records of all debts they collect, including amounts and payment dates. This rule protects you: if a collector claims you owe money but can't produce records, their case weakens significantly.

Statute of Limitations on Debt in Hawaii

Hawaii law sets a time limit on how long creditors can sue you for unpaid debts. Once the statute of limitations expires, the debt becomes "time-barred." Collectors can still ask for payment, but they cannot take you to court.

Time Limits by Debt Type

• Written contracts (credit cards, personal loans): 6 years
• Oral contracts: 6 years
• Promissory notes: 6 years
• Open accounts (medical bills, utility bills): 6 years

The clock starts on the date of your last payment or the date you last used the account, whichever is later. If a collector sues you for a time-barred debt, you must raise the statute of limitations as an affirmative defense in your answer to the lawsuit. The court won't dismiss the case automatically.

Beware of Restarting the Clock

Making a payment or even acknowledging the debt in writing can reset the statute of limitations in some states. Hawaii law is less clear on this, but it's safest to avoid making payments on very old debts without consulting an attorney first.

What to Do When a Collector Violates the Law

If a Hawaii collector breaks federal or state law, you have three options.

1. File a Complaint

Report violations to:

• Federal Trade Commission (FTC): File online at reportfraud.ftc.gov or call 877-382-4357.
• Consumer Financial Protection Bureau (CFPB): File at consumerfinance.gov/complaint or call 855-411-2372.
• Hawaii Department of Commerce and Consumer Affairs: Contact the Office of Consumer Protection at 808-586-2630.

Complaints create a paper trail and may trigger investigations, but they won't resolve your debt or compensate you directly.

2. Send a Cease-and-Desist Letter

Under the FDCPA, you can demand in writing that a collector stop contacting you. Send the letter via certified mail with return receipt. Once they receive it, they can only contact you to confirm they're stopping or to notify you of specific actions like filing a lawsuit.

Sample language: "I am requesting that you cease all communication with me regarding the alleged debt in the amount of $X. This is my formal request under the Fair Debt Collection Practices Act."

3. Sue for Damages

If a collector violates the FDCPA, you can sue in state or federal court within one year. You don't need to prove actual harm to recover up to $1,000 in statutory damages. Many consumer attorneys take these cases on contingency because the law allows them to recover fees from the collector if you win.

What About Lawsuits?

If a collector sues you in Hawaii, you have 20 days to file an answer with the court. Ignoring the lawsuit guarantees the collector wins a default judgment, which allows them to garnish wages or freeze bank accounts.

Your answer should:

• Admit or deny each claim in the complaint
• Raise affirmative defenses (like the statute of limitations)
• Request proof that the collector owns the debt

Talk About Debt's bankruptcy screener can help you evaluate whether bankruptcy is a better option than fighting in court. For many people facing multiple lawsuits, Chapter 7 stops collections immediately and wipes out most unsecured debts in about four months. Learn more at Talk About Debt.

Can Collectors Garnish Your Wages in Hawaii?

Yes, but only after winning a lawsuit. Hawaii law limits wage garnishment to the lesser of:

• 5% of your gross wages, or
• The amount by which your weekly disposable earnings exceed 50 times the Hawaii minimum wage

As of 2024, the Hawaii minimum wage is $14.00 per hour, so 50 times that is $700 per week. If you earn $800 per week after taxes, only $100 is subject to garnishment. The 5% rule would cap it at $40 per week. The collector gets whichever is less.

Social Security, SSI, VA benefits, and unemployment are generally exempt from garnishment.

Debt Validation: Make Them Prove It

Within five days of first contacting you, a collector must send a written validation notice stating:

• The amount you owe
• The name of the creditor
• Your right to dispute the debt within 30 days

If you dispute the debt in writing within 30 days, the collector must stop collection efforts until they send you proof. Many junk debt buyers can't produce the original contract or complete payment history, which may kill their case.

Send your dispute via certified mail. Keep a copy.

The Bottom Line

Hawaii debt collectors must follow both federal and state law. When they don't, you have options: file complaints, demand they stop, or sue for damages. If you're facing a lawsuit or multiple debts, acting fast gives you the most leverage.