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

Tennessee collectors contact over 300,000 residents each year, according to Consumer Financial Protection Bureau complaint data. Many of those calls break state law. Here's what collectors can and can't do under Tennessee's Collection Services Act—and how you use these rules to protect yourself.

When Collectors Can (and Can't) Call You

Tennessee Code Annotated § 62-20-112 sets clear boundaries. Collectors cannot call you before 8 a.m. Or after 9 p.m. Your local time. If they do, document the date and time. That's evidence.

They also can't call repeatedly on the same debt with the intent to harass. "Repeatedly" isn't defined by statute, but Tennessee courts have found that three or more calls in a single day crosses the line.

Once you send a written request telling them to stop calling you at work, they must comply. Use certified mail. Keep the receipt.

Who They Can't Contact About Your Debt

Under Tennessee Comp. R. & Regs. 0320-05-.03, collectors cannot discuss your debt with third parties. That includes your employer, your neighbor, your cousin. The only exceptions: your attorney, a credit reporting agency, or the original creditor.

If a collector leaves a voicemail with your boss mentioning your debt, they've violated state law. If they tell your spouse details about what you owe, same violation.

They can contact third parties to locate you, but only once per person, and they can't reveal they're collecting a debt.

What Counts as Harassment Under Tennessee Law

Tennessee Comp. R. & Regs. 0320-05-.04 bans harassment, oppression, or abuse. That includes:

• Threats to harm your reputation, property, or person
• Obscene or profane language
• Publishing your name on a "deadbeat list" (except to credit bureaus)
• Calling continuously to annoy or harass you
• Refusing to identify themselves when they call

If a collector says "I'm going to ruin your credit forever" or "You'll regret ignoring me," write down the exact words, the date, and the caller's name. That's a violation you can use.

Your Right to Validate the Debt

Within five days of first contacting you, collectors must send written notice of the debt amount, the original creditor's name, and your right to dispute. This comes from both Tennessee Comp. R. & Regs. 0320-05-.07 and the federal Fair Debt Collection Practices Act.

If you dispute the debt in writing within 30 days, they must stop collection efforts until they mail you verification. That means they can't sue you, report to credit bureaus, or keep calling until they send proof.

Send your dispute via certified mail. State clearly: "I dispute this debt and request validation." You don't need to explain why. The burden of proof shifts to them.

The Statute of Limitations in Tennessee

Tennessee has a six-year statute of limitations on written contracts (Tenn. Code Ann. § 28-3-109). That includes most credit card agreements. For open accounts without a signed contract, it's also six years.

Once six years pass from your last payment or written acknowledgment of the debt, collectors can't sue you successfully. They can still call and ask for payment, but if they threaten to sue on a time-barred debt, that's a violation of both state and federal law.

Check the date of your last payment before responding to any collector. If you make even a $5 payment on an old debt, you restart the clock.

What to Do If You're Sued in Tennessee

Tennessee collectors file thousands of lawsuits each year in General Sessions Court (for debts under $25,000) or Circuit Court (for larger amounts). You have 30 days to respond after being served.

If you don't respond, the collector gets a default judgment automatically. That judgment lets them garnish up to 25% of your disposable earnings or freeze your bank account.

Your response is called an "Answer." You can file it yourself or work with an attorney. In your Answer, you can raise defenses like:

• The debt is beyond the statute of limitations
• The amount claimed is wrong
• You already paid this debt
• You never had an account with the original creditor
• The collector doesn't have proper documentation

Tennessee law requires debt buyers to attach specific documents to their complaint, including the original contract and a complete account statement. If they don't, that's grounds to dismiss the case.

Consider our free bankruptcy screener if you're facing a lawsuit and can't afford to pay. Chapter 7 bankruptcy stops lawsuits immediately and can eliminate the debt entirely.

Wage Garnishment Limits in Tennessee

If a collector gets a judgment against you, they can garnish your wages. But Tennessee limits garnishment to the lesser of 25% of your disposable earnings or the amount by which your weekly income exceeds 30 times the federal minimum wage (currently $217.50 per week).

Your disposable earnings are what's left after legally required deductions,taxes, Social Security, Medicare. The collector can't touch child support, alimony, or retirement contributions in the calculation.

If you're the head of household supporting dependents, you may qualify for head of household exemption, which can reduce or eliminate garnishment. File a "Claim and Delivery Bond" with the court to assert this exemption.

Certain Income Is Off-Limits

Tennessee law protects specific income sources from garnishment entirely:

• Social Security benefits
• Supplemental Security Income (SSI)
• Veterans benefits
• Unemployment compensation
• Workers' compensation
• Most pension and retirement accounts

If a collector freezes your bank account and it contains only protected funds, file an exemption claim immediately. You'll need to prove the funds' source with bank statements and benefit letters.

How to File a Complaint Against a Collector

If a collector violates Tennessee law, file a complaint with the Tennessee Department of Commerce and Insurance. They regulate collection agencies under the Collection Service Act.

You can also file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov. For federal law violations, you have one year to sue the collector for up to $1,000 in statutory damages plus actual damages and attorney fees.

Keep detailed records: dates, times, caller names, what was said. If you have voicemails or letters, save them. This evidence matters if you decide to file a lawsuit or complaint.

Bankruptcy Stops Collection Activity Immediately

Filing bankruptcy triggers an automatic stay. That's a court order that stops all collection activity,calls, letters, lawsuits, garnishments,the moment you file.

Chapter 7 bankruptcy eliminates most unsecured debts (credit cards, medical bills, personal loans) in about four months. Chapter 13 creates a 3-5 year payment plan based on what you can afford, and forgives the rest at the end.

Bankruptcy isn't right for everyone, but if you're facing multiple lawsuits or collectors are calling daily, explore your bankruptcy options to see if it makes sense for your situation.

Tennessee-Specific Resources

Tennessee residents can access free legal help through Legal Aid Society of Middle Tennessee and the Cumberlands (lasmt.org) or Memphis Area Legal Services (malsi.org). Both organizations help with debt collection defense if you qualify based on income.

The Tennessee Bar Association also runs a Lawyer Referral Service that can connect you with an attorney who handles consumer law cases. Initial consultations are typically $50 or less.

Don't Ignore Collectors,Use the Law

Ignoring debt collectors won't make them disappear. But you don't have to tolerate violations or give up rights you didn't know you had.

Send validation requests. Document violations. Respond to lawsuits. Assert your exemptions. The law gives you tools,use them.

If you're unsure whether bankruptcy might help, take our free 2-minute screener to see if you qualify.