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

New Mexico protects you from abusive debt collectors at both the state and federal level. If a collector is calling you at midnight, lying about being an attorney, or threatening to garnish wages they can't touch, they're likely breaking the law.

You have specific rights. The question is whether you know how to use them.

The Federal FDCPA Applies in New Mexico

The Fair Debt Collection Practices Act (FDCPA) has been federal law since 1977. It applies to third-party debt collectors—agencies trying to collect debts they bought or were hired to collect. It does not cover original creditors collecting their own debts.

Under the FDCPA, collectors in New Mexico cannot:

• Call you before 8 a.m. Or after 9 p.m. (your local time)
• Contact you at work if they know your employer prohibits personal calls
• Discuss your debt with neighbors, friends, or family members
• Use profane, threatening, or harassing language
• Falsely claim to be attorneys, law enforcement, or government officials
• Threaten arrest or legal action they don't intend to take
• Contact you directly once you've hired an attorney (they must go through your lawyer)

The FDCPA also gives you the right to request debt validation within 30 days of first contact. Once you send a validation letter, the collector must stop all collection activity until they provide proof you owe the debt. That means the name of the original creditor, the amount owed, and evidence the debt is actually yours.

If they can't prove it, they can't collect it.

New Mexico's State Law Mirrors Federal Protections

New Mexico passed its own Fair Debt Collection Practices Act (NMFDCPA) to reinforce federal rules and close potential loopholes. The state law largely mirrors the FDCPA but gives New Mexico residents an additional legal avenue if collectors violate your rights.

The NMFDCPA prohibits the same abusive tactics as federal law:

• Impersonating attorneys or government agents
• Threatening legal action the collector has no authority or intention to pursue
• Contacting third parties about your debt (except to locate you)
• Using deceptive or misleading statements to coerce payment

Because New Mexico has its own statute, you can pursue violations under both state and federal law. That means more potential damages if a collector crosses the line.

What Happens If a Collector Breaks the Law

If a debt collector violates the FDCPA or NMFDCPA, you can sue them. You don't need a lawyer to file, though having one increases your odds of winning.

Under the FDCPA, you can recover:

• Up to $1,000 in statutory damages per lawsuit (even if you can't prove financial harm)
• Actual damages (emotional distress, lost wages, therapy costs)
• Attorney's fees and court costs (the collector pays, not you)

New Mexico's state law offers similar remedies. You have one year from the date of the violation to file a federal FDCPA claim. For state claims, New Mexico's statute of limitations is typically four years.

Start by documenting every violation. Save voicemails, record call times, screenshot texts. If a collector calls you at 10:30 p.m. Three nights in a row, that's evidence. If they tell your boss you owe money, that's a violation. Keep a log.

You can file a complaint with the Consumer Financial Protection Bureau (CFPB) and the New Mexico Attorney General's Office. These agencies won't sue on your behalf, but they track patterns and can investigate collectors with repeat violations.

Debt Validation: Your First Line of Defense

Within five days of first contacting you, a debt collector must send a written notice with:

• The amount of the debt
• The name of the creditor
• A statement that you have 30 days to dispute the debt

If you dispute the debt in writing within that 30-day window, the collector must stop collection efforts until they mail you verification. That verification must show the debt is valid, the amount is correct, and they have legal authority to collect.

Many collectors can't meet that burden. Debts get sold, resold, and sold again. Documentation disappears. Account numbers change. If a collector can't validate, they're required to stop pursuing you and remove the debt from your credit report.

Send your validation request via certified mail with return receipt. Use simple language: "I dispute this debt. Provide verification as required under the FDCPA." Keep a copy for your records.

What About Wage Garnishment in New Mexico?

New Mexico allows wage garnishment, but only after a collector sues you and wins a judgment. Even then, the state limits how much they can take.

Federal law protects the greater of:

• 75% of your disposable earnings, or
• 30 times the federal minimum wage per week

New Mexico follows federal limits. That means collectors can garnish up to 25% of your disposable income (after taxes and mandatory deductions). If you earn minimum wage or close to it, you may be exempt entirely.

Certain income is off-limits in New Mexico:

• Social Security benefits
• Supplemental Security Income (SSI)
• Veterans benefits
• Unemployment compensation
• Workers' compensation

If a collector tries to garnish protected income, file an objection with the court immediately. You may also qualify for a head of household exemption if you provide more than half the support for a dependent.

How Bankruptcy Stops Collection in New Mexico

Filing bankruptcy triggers an automatic stay, which stops all collection activity the moment you file. That includes lawsuits, wage garnishments, bank levies, and phone calls.

If you're facing a lawsuit or garnishment, bankruptcy may be your fastest path to relief. Chapter 7 wipes out most unsecured debts in 3-4 months. Chapter 13 lets you repay debts over 3-5 years while protecting your assets.

New Mexico's bankruptcy exemptions are relatively generous. You can protect:

• Up to $60,000 in home equity
• $4,000 in vehicle equity
• $500 in jewelry
• $6,000 in household goods and furnishings

If you're considering bankruptcy, start with a free bankruptcy screener to see if you qualify. Most people who file Chapter 7 lose nothing and eliminate all their credit card and medical debt.

Sued by a Debt Collector? File an Answer

If a collector sues you in New Mexico, you have 30 days to file a written response with the court. Miss that deadline and the collector wins by default. They get a judgment, and suddenly they can garnish your wages and freeze your bank account.

Your answer doesn't need to be complicated. You can:

• Admit or deny each claim in the complaint
• Raise affirmative defenses (statute of limitations, lack of proof, FDCPA violations)
• Demand the collector prove you owe the debt

Many debt collection lawsuits fall apart when you force the collector to prove their case. They may not have the original contract. They may not have a complete payment history. They may not have legal standing to sue.

If you can't afford an attorney, Talk About Debt offers a free bankruptcy consultation to help you understand your options. In some cases, bankruptcy is cheaper and faster than fighting a lawsuit.

When Collectors Can,and Can't,Contact You

Debt collectors have limited windows to reach you. Federal and state law both say they can't call before 8 a.m. Or after 9 p.m. They can't contact you at work if you tell them your employer doesn't allow it.

Once you send a written request asking them to stop contacting you, they must stop,except to confirm they received your letter or to notify you of specific actions like filing a lawsuit.

If you hire an attorney, the collector must communicate only with your lawyer. Continuing to contact you directly after you've provided your attorney's information is a clear FDCPA violation.

You can also limit contact to specific methods. Tell them in writing: "Only contact me by mail at this address." They must comply.

Statute of Limitations on Debt in New Mexico

New Mexico's statute of limitations varies by debt type:

• Written contracts (credit cards, personal loans): 6 years
• Oral contracts: 4 years
• Medical debt: 4 years

Once the statute expires, a collector can't sue you for the debt. They can still ask you to pay, but you have an absolute defense if they file a lawsuit.

The clock starts when you miss your first payment, not when the account goes to collections. If you make a payment or acknowledge the debt in writing, the clock may reset. Be careful.

If a collector sues you on a time-barred debt, raise the statute of limitations as an affirmative defense in your answer. The court should dismiss the case.

The Bottom Line

New Mexico law gives you powerful tools to fight abusive debt collectors. Know your rights, validate every debt, and document violations. If you're facing a lawsuit or garnishment, you have options,including bankruptcy. Don't wait until they've already seized your paycheck.