Wisconsin Debt Collection Laws: Know Your Rights in 2024

Wisconsin protects you from abusive debt collectors through two powerful laws. You have more rights than you might think.

The Wisconsin Consumer Act (WCA) shields you from unfair business practices. The federal Fair Debt Collection Practices Act (FDCPA) adds another layer of protection. Together, these laws give you real power against aggressive collectors.

Debt Collection Laws in Wisconsin

Two main laws protect you from abusive debt collection:

• The Wisconsin Consumer Act (WCA)
• The Fair Debt Collection Practices Act (FDCPA)

The WCA mirrors many FDCPA protections. But it goes further in some key areas.

Wisconsin Consumer Act Protection

The WCA promotes fairness and transparency in debt collection. It protects you from unfair and deceptive practices.

Here’s what makes the WCA stronger than federal law. It applies to both original creditors and third-party collectors. The FDCPA only covers third-party collectors.

Healthcare billing companies are the only exception.

Under the WCA, debt collectors and creditors cannot:

• Threaten violence or criminal prosecution against you
• Spread false information to damage your reputation
• Harass you with excessive calls or odd-hour contact
• Share disputed debt information without noting the dispute
• Threaten or harass your family members
• Use obscene or abusive language
• Create fake government or court documents

Federal FDCPA Protection

The FDCPA provides similar protections against harassment and deception. But it only applies to third-party debt collectors.

Debt collectors must follow strict rules when contacting you. They must identify themselves and verify your debt.

Collectors must send you written notice within five days. The notice must include the debt amount and creditor name. You have 30 days to dispute the debt in writing.

Debt collectors cannot:

• Call before 8 a.m. or after 9 p.m.
• Contact you at work if you tell them not to
• Harass you with repeated calls
• Use threats or profane language
• Falsely claim to be attorneys or government officials
• Threaten arrest or legal action they cannot take
• Discuss your debt with friends, family, or employers
• Add unauthorized fees to your debt

What to Do When Collectors Break the Law

You can fight back when debt collectors violate your rights. You have two main options: report them or sue them.

File a Complaint Against the Collector

Report WCA violations to the Wisconsin Department of Financial Institutions. You can file a complaint online.

Some counties have local consumer protection agencies. Adams County residents can contact the Office of Consumer Protection.

For FDCPA violations, file a complaint with the Consumer Financial Protection Bureau. The CFPB enforces federal law and penalizes violators.

Sue the Collector for Damages

You can sue in state court for WCA violations. The damages you can recover depend on who violated the law.

Different rules apply for original creditors versus debt collectors. You must prove the violation was intentional, not accidental.

For FDCPA violations, you can sue in federal court. You may recover actual damages plus up to $1,000 in statutory damages. If you win, the collector pays your attorney fees.

If you’ve been sued by a collector, our partner Solo can help you respond to the lawsuit properly.

Statute of Limitations for Debt Collection

Wisconsin gives creditors six years to sue you for most debts. The statute of limitations applies to credit cards and medical bills.

After six years, collectors cannot sue you in court. But the debt doesn’t disappear. Collectors can still contact you about it.

Be careful about making payments on old debts. A single payment can restart the six-year clock.

Never acknowledge owing an old debt. Don’t promise to pay it. These actions can reset the statute of limitations.

What Collectors Can Do in Wisconsin

When you fall behind on payments, your account goes into default. Expect collection calls and letters to begin quickly.

Your original creditor may sell your debt to a collection agency. After several months of non-payment, you might face a lawsuit.

Debt collection lawsuits have increased significantly in recent years. Collectors pursue legal action because court orders give them powerful tools.

If a collector wins in court, they can:

• Garnish your wages
• Levy your bank account
• Place a lien on your property

Wage garnishment is the most common collection method. Wisconsin law limits how much collectors can take from your paycheck.

Auto loans work differently. If you default, your lender can repossess your car. No court order is required for repossession in Wisconsin.

Facing a debt lawsuit? Our partner Solo has helped over 280,000 people respond to debt collectors and settle for less. They offer a 100% money-back guarantee.

Debt Relief Options in Wisconsin

Consumer debt continues to climb across America. Credit card balances have reached record highs.

You’re not alone if you’re struggling with bills. Many debt relief options can help you regain control.

Popular debt relief strategies include:

• Debt management plans: Work with a credit counseling agency to consolidate payments
• Debt consolidation: Combine multiple debts into one lower-interest loan
• Debt settlement: Negotiate to pay less than you owe
• Bankruptcy: Get a fresh start by discharging unsecured debts

The right option depends on your unique situation. Consider scheduling a free appointment with a nonprofit credit counselor.

Credit counselors analyze your debt, income, and goals. They help you create a realistic plan to become debt-free.

You deserve to know your rights. You deserve to find relief from overwhelming debt.