Hawaii Debt Collection Laws: Your Rights in 2024

The first time the phone rang, it was an annoyance. Now you find yourself on edge each time you check the caller ID. Debt collectors are persistent, and sometimes downright aggressive.

You’re not alone. Thousands of Hawaii residents face collection calls every year. The good news? You have powerful legal protections. Hawaii laws shield you from intimidation, harassment, and deceptive practices.

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Federal Debt Collection Laws Apply in Hawaii

The Fair Debt Collection Practices Act (FDCPA) protects every American. The law places strict limits on debt collection agencies.

Debt collectors cannot:

Call you multiple times each day
Call before 8:00 a.m. or after 9:00 p.m.
Tell your friends, family, or coworkers about your debt
Call you after receiving a Cease and Desist Letter
Use vulgar or offensive language
Threaten you with arrest for unpaid debt
Refuse to validate your debt

You can report violations to the Federal Trade Commission at 877-382-4357. The Consumer Financial Protection Bureau also accepts complaints at 855-411-2372.

Hawaii State Laws Provide Extra Protection

Hawaii Revised Statutes Chapter 443B outlines strict rules for collection agencies. These state laws work alongside federal protections to shield you.

Hawaii debt collection laws require:

All collection agencies must register with the state annually by June 30
Collectors must keep permanent records of all funds and forms collected
Agencies closing down must notify clients in writing
No one can pretend to be a registered debt collector

Hawaii law explicitly prohibits:

Threats, coercion, or intimidation tactics
Violence threats or harm to your reputation
False accusations or arrest threats
Profane or abusive language
Lying about who they are or what you owe

Violators face fines up to $5,000 per violation. Additional penalties apply if you’re over 62 or if collectors use defamatory language.

Statute of Limitations on Debt in Hawaii

Hawaii sets time limits for how long collectors can sue you. These deadlines depend on your debt type.

Debt Type	Time Limit
Credit Card	6 years
Medical Bills	6 years
Student Loans	6 years
Auto Loans	6 years
Mortgages	6 years
Personal Loans	6 years
Judgments	10 years

Most consumer debts carry a six-year statute of limitations. After that deadline, collectors cannot sue you for the debt.

Hawaii Protects Certain Income From Garnishment

Hawaii law prohibits garnishment of specific income sources. Collectors cannot touch your Social Security Disability income. Social Security Retirement benefits are also protected.

Unemployment benefits remain safe from garnishment. Civil service pension payments cannot be seized either.

Validate Your Debt Before Paying

You have the right to confirm any debt is legitimate. Request that the collector provide their agency name and address.

Send a Debt Validation Letter to that address. The agency must respond with the original creditor’s name and the amount owed.

Validation protects you from paying debts you don’t owe. It also helps identify fraudulent collection attempts.

Send a Cease and Desist Letter

A Cease and Desist Letter stops collection calls immediately. You must make your request in writing.

Allow a few days for the collector to receive your letter. Once received, calls must stop by law.

One warning: collectors can still sue you after receiving your letter. A Cease and Desist doesn’t make the debt disappear. But it does stop harassment while you plan your next move.

Settle Your Debt and Move Forward

Settling eliminates the debt and stops collection calls. Collection agencies often buy debts at steep discounts. They may accept less than you owe.

A typical settlement ranges from 40% to 60% of the original balance. You make a lump-sum payment. The collector releases you from the remaining debt.

Debt settlement does affect your credit score temporarily. But it helps you avoid lawsuits and move toward financial stability.

Example: How Debt Settlement Works in Hawaii

Kai received multiple collection calls about a credit card debt. He sent a Debt Validation Letter to confirm the debt was real. He also submitted a Cease and Desist Letter to stop the calls.

After validating the debt, Kai offered to settle for 40% of the balance. The collector accepted his offer. His credit score took a temporary hit. But Kai eliminated the debt and regained his peace of mind.

Respond Quickly If You’re Sued

Collectors may file lawsuits to recover unpaid debts. When served with a lawsuit, you have limited time to respond. Hawaii typically gives you 20 days to file an Answer.

Your Answer is a legal document that addresses the collector’s claims. Our partner Solo helps you create a proper Answer. You can have an attorney review your document before filing.

Ignoring a lawsuit leads to a default judgment. The collector can then garnish wages or freeze bank accounts. Always respond to debt lawsuits on time.

Know When to Report Violations

Debt collectors who break the law deserve consequences. If a collector violates your rights, take action.

Report violations to the Federal Trade Commission or Consumer Financial Protection Bureau. You can also file a complaint with Hawaii’s Department of Commerce and Consumer Affairs.

You may have grounds for a lawsuit against abusive collectors. FDCPA violations can result in damages up to $1,000 plus attorney fees.

Your Path Forward From Debt Collection

Hawaii law gives you strong protections against abusive collectors. You have options whether you’re receiving collection calls or facing a lawsuit.

Start by validating the debt to confirm it’s legitimate. Send a Cease and Desist if calls become harassment. Consider settling the debt for less than you owe.

If you’re sued, respond with a proper Answer within the deadline. Our partner Solo can guide you through the lawsuit response process.

You don’t have to face debt collectors alone. Hawaii law is on your side.

Frequently Asked Questions

What is the statute of limitations on debt in Hawaii?

Most consumer debts in Hawaii have a six-year statute of limitations. This includes credit cards, medical bills, personal loans, auto loans, and mortgages. Judgments have a 10-year statute of limitations. After the deadline passes, collectors cannot sue you for the debt.

How do I stop debt collectors from calling me in Hawaii?

Send a written Cease and Desist Letter to the collection agency. By law, they must stop calling once they receive your letter. You should also validate the debt first to ensure it's legitimate. Note that a Cease and Desist doesn't prevent lawsuits.

Can debt collectors garnish my Social Security in Hawaii?

No. Hawaii law prohibits garnishment of Social Security Disability income, Social Security Retirement income, unemployment benefits, and civil service pension payments. These income sources are protected from debt collectors.

What should I do if I'm sued for debt in Hawaii?

You must file an Answer with the court within 20 days of being served. Your Answer addresses the collector's claims and asserts your defenses. Failing to respond results in a default judgment, which allows wage garnishment and bank account levies.

Can I settle my Hawaii debt for less than I owe?

Yes. Collection agencies often accept 40-60% of the original balance as a settlement. They buy debts at steep discounts, so settling benefits both parties. Make sure to get any settlement agreement in writing before making payment.

Hawaii Debt Collection Laws: Your Rights & Protections in 2024