Wyoming Debt Collection Laws: Your Rights and Enforcement Options

Wyoming collectors can take up to 25% of your disposable income if they win a judgment. But they must follow strict licensing and validation rules to get that far.

If you owe debt in Wyoming, state statutes 33-11-101 through 33-11-116 create hard limits on collector behavior. These laws work alongside federal protections under the Fair Debt Collection Practices Act (FDCPA). When collectors violate them, you can file complaints and sue for damages.

Wyoming Requires Debt Collectors to Hold a Valid License

Unlicensed collection agencies commit a misdemeanor in Wyoming. Under WY Stat § 33-11-115, operating without a license carries penalties up to $750 or six months in jail.

This matters to you because unlicensed collectors have no legal standing to sue. If you receive a collection letter, verify the agency holds a valid Wyoming license before responding. You can check with the Wyoming Secretary of State's office.

When an unlicensed collector contacts you, report them to the Wyoming Attorney General's Consumer Protection Unit. Their actions may invalidate the entire debt claim.

Collectors Must Validate Your Debt When You Request It

Wyoming statute requires collectors to provide a detailed written record of your debt upon request. This validation must include:

• The original creditor's name
• The total amount owed
• A breakdown of fees and charges
• Your payment history
• The current balance

You cannot demand this information more often than you make payments. But you can request it anytime during the collection process.

Send your validation request in writing via certified mail. Keep the receipt. If the collector continues collection activity without providing validation, they violate Wyoming law and the FDCPA.

Debt validation catches errors and sometimes exposes that the collector lacks documentation to prove the debt. Without proper records, they cannot win a lawsuit.

Wyoming Caps What Collectors Can Add to Your Debt

Collectors in Wyoming can only recover the original debt amount plus legal interest and court costs. They cannot tack on arbitrary fees.

If the original contract or promissory note includes an attorney fee clause, the collector can add those fees—but only if a licensed attorney represents them in court. The attorney receives this payment, not the collection agency.

This rule prevents debt ballooning. A $2,000 credit card debt should not become $5,000 because a collector added junk fees.

Review any settlement offer carefully. If the collector inflates the balance with unauthorized fees, you have grounds to dispute the amount.

Collectors Must Report Collections to Clients Within 30 Days

When a creditor hires a collection agency, Wyoming law requires the agency to report all collected funds within 30 days of the month's end. This statement must detail when payments were received and how much.

If you are paying a collector, this rule matters because it creates a paper trail. If the collector claims you missed a payment, the client's records should reflect what was actually collected.

Disputes over payment application often arise when collectors fail to maintain proper records. You have the right to request payment documentation from the original creditor.

Wyoming Wage Garnishment Law Limits Income Seizure

Under WY Stat § 1-15-408, creditors who win a judgment can garnish the lesser of:

• 25% of your disposable income, or
• The amount by which your weekly disposable income exceeds 30 times the federal minimum wage

Disposable income means what remains after legally required deductions like taxes and Social Security. It does not mean after your rent and groceries.

If you earn $600 per week after taxes, the collector can take $150. If you earn $300 per week, they can take $75.

The garnishment order goes to your employer, who must withhold the amount from your paycheck. But if the order demands more than 25%, it violates Wyoming law.

Challenge an excessive garnishment immediately. File an objection with the court that issued the order. You may need to attend a hearing to prove the garnishment exceeds statutory limits.

Federal Protections Layer on Top of State Law

The FDCPA applies to third-party collectors nationwide, including those operating in Wyoming. It prohibits:

• Calling before 8 a.m. Or after 9 p.m. In your time zone
• Contacting you at work if you tell them your employer prohibits it
• Discussing your debt with third parties like neighbors or coworkers
• Using abusive language or making threats
• Misrepresenting the debt amount or their authority

Original creditors are not bound by the FDCPA, but collection agencies and debt buyers are. If a collector violates these rules, document the incident. Note the date, time, and what was said.

You can sue under the FDCPA for actual damages, up to $1,000 in statutory damages, and attorney fees. Wyoming state law violations provide additional grounds for claims.

How to Stop Collector Contact in Wyoming

Send a cease communication letter via certified mail. Once the collector receives it, they can only contact you to confirm receipt or notify you of specific actions like filing a lawsuit.

Use this template:

[Your Name]
[Your Address]
[Date]

[Collector Name]
[Collector Address]

Re: Account [Number]

This is a formal request to cease all communication regarding the above account. Under the Fair Debt Collection Practices Act, you may only contact me to confirm receipt of this letter or to notify me of specific actions such as filing a lawsuit.

Any further contact beyond these exceptions will be considered harassment and may result in legal action.

[Your Signature]

Keep a copy of the letter and the certified mail receipt. If the collector continues calling after receiving your letter, they violate federal law.

When Collectors Sue You in Wyoming

Debt collectors file lawsuits in Wyoming's circuit or district courts, depending on the debt amount. You typically have 20 days to respond after being served.

Do not ignore the lawsuit. If you fail to respond, the court enters a default judgment against you. The collector can then garnish wages, levy bank accounts, and place liens on property.

File an answer addressing each claim in the complaint. Raise affirmative defenses like:

• Statute of limitations (Wyoming's is typically 8 to 10 years depending on debt type)
• Lack of standing (the collector cannot prove they own the debt)
• Failure to state a claim
• Payment or settlement

If you cannot afford an attorney, contact Wyoming Legal Services for low-income assistance or look into self-help resources from the court.

Consider filing bankruptcy if you face multiple lawsuits or judgments. Bankruptcy stops garnishments and may eliminate the debt entirely. Use our bankruptcy screener to see if you qualify.

How to Report Collector Violations

If a collector violates Wyoming or federal law, report them to:

• Wyoming Attorney General's Consumer Protection Unit: Submit complaints online or call 307-777-7874
• Consumer Financial Protection Bureau (CFPB): File at consumerfinance.gov/complaint
• Federal Trade Commission (FTC): Report at reportfraud.ftc.gov

Complaints trigger investigations. The CFPB has enforcement authority and can force collectors to change practices or pay restitution.

You can also file a private lawsuit. Under the FDCPA, you can recover actual damages plus up to $1,000 in statutory damages per case. If you win, the collector pays your attorney fees.

Negotiating Debt in Wyoming

Collectors often settle for 30% to 60% of the balance if you can pay a lump sum. They buy debts for pennies on the dollar, so any recovery is profit.

Get settlement offers in writing before paying. The agreement should state the exact amount and confirm the debt will be marked "paid in full" or "settled."

Never give collectors direct access to your bank account. Pay by money order or a single-use debit card. Once they have your account information, they may take more than agreed.

If you cannot pay a lump sum, ask about payment plans. Make sure the plan is manageable. Missing payments often voids the agreement and restarts aggressive collection.

Wyoming Exemptions Protect Some Assets

Even if a collector wins a judgment, Wyoming exemptions protect certain property from seizure:

• Homestead exemption: Up to $20,000 in home equity (WY Stat § 1-20-101)
• Motor vehicle: Up to $2,400 in equity
• Household goods: Up to $2,000 total
• Tools of the trade: Up to $2,000

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

If a collector tries to seize exempt property, file an objection with the court immediately. Bring documentation proving the asset qualifies for exemption.

Bottom Line

Wyoming debt collection laws give you tools to fight harassment and excessive garnishment. When collectors violate these rules, you can report them, dispute the debt, or file a lawsuit. If debt overwhelms you, bankruptcy may offer a cleaner reset than years of garnishment.