Idaho Debt Collection Laws: Your Rights in 2024

No one likes dealing with debt collectors. Collection letters contain confusing legal jargon designed to make you feel guilty. Phone calls can interrupt your busy day and cause unnecessary stress.

If a collection agency is pursuing you for debt in Idaho, you need to understand your rights. You’ll know when a debt collector has crossed the line and how to handle it.

Respond to Your Idaho Debt Lawsuit Today

Don't let collectors win by default. You have rights under Idaho law, and you can fight back with the right response. Answer your summons before the deadline expires.

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Idaho follows federal debt collection laws, and you have powerful protections. Knowing these rules helps you fight back against unfair tactics.

Idaho Follows the Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is federal legislation that protects consumers from unfair debt collection tactics. It sets standards that debt collectors must follow in all 50 states, including Idaho.

Idaho hasn’t enacted additional consumer protection laws beyond the FDCPA. The state has a few other debt collection laws, but they mainly concern licensing requirements.

Under the FDCPA, debt collectors cannot abuse or harass you with any of these tactics:

Calling you repeatedly throughout the day and letting the phone ring continuously
Using obscene or profane language to coerce you into paying a debt
Threatening to use physical violence against you for unpaid debts
Claiming they’ll harm your reputation if you don’t pay immediately
Publishing your name in a list of people who don’t pay debts
Calling you without identifying themselves or their agency

Example: Steve receives a phone call from Sweet Berry Collections about an old credit card debt. The debt collector threatens to stalk him everywhere if he doesn’t pay by Friday. Steve looks out his window and sees a truck labeled “Sweet Berry Collections” parked outside. Steve calls the police and files a harassment complaint with the FTC.

If you’re facing a debt lawsuit in Idaho, our partner Solo can help you respond properly and negotiate a settlement.

Debt Collectors Can’t Use Deceptive Practices

The FDCPA states that collection agencies can’t willfully mislead you or make false statements. Deceptive practices include:

Claiming they’re a state or federal government representative when they’re not
Telling you a debt is within the Statute of Limitations when it’s time-barred
Implying they’re an attorney or represent a law firm when that’s false
Failing to disclose that a communication is an attempt to collect a debt
Using the name of an unconnected business to collect a debt
Implying their communications are legal process documents

Example: Cody receives a collection notice from Red Hot Collections for a 25-year-old credit card debt. No current judgment exists against Cody. Red Hot Collections threatens to sue him. They’re using deceptive practices because Idaho’s Statute of Limitations for credit card debt is only five years.

Facing a lawsuit for unpaid debt? You need to file an Answer to your debt lawsuit in Idaho within the deadline.

Idaho Debt Collectors Must Have a Permit

Under I.C. § 26-2223, all collection agencies must have an Idaho license. Collection agencies, debt counselors, and credit repair organizations need state permission to operate.

Idaho prohibits these actions without a collection agency permit:

Collecting or receiving payments on behalf of another organization for outstanding debts
Sending collection letters to anyone living in Idaho
Implying or engaging in any activity as a third party collecting debts

Collection letters you receive in Idaho should include the agency’s permit number. Ask for the debt collector’s license number in your Debt Validation Letter if it doesn’t appear.

Always Ask Collection Agencies to Validate Debts

Under the FDCPA and Idaho Statutes 67-2358, debt collectors must provide specific information when contacting you:

The exact amount of the debt
Notice that the debt will be assumed valid unless you dispute it within 30 days
Confirmation that the agency will obtain verification if you dispute the debt in writing
Warning that the agency may employ additional collection agencies, increasing your costs

You can dispute a debt after receiving a collection notice by sending a Debt Validation Letter. Even if you recognize a debt, you should always dispute it first.

A Debt Validation Letter informs the collection agency that you dispute the debt. The agency must provide specific information about the obligation. Request the debt amount, last transaction date, debt age, and the agency’s Idaho license number.

If a collection agency can’t provide the requested information, they must stop collection efforts. They must also remove any adverse reporting from your credit report.

How to Settle Your Debt in Idaho

The surest way to stop debt collectors is by paying what you owe. You can usually settle your debt for a steep discount if you negotiate wisely.

In a debt settlement, you offer your creditor a portion of the total amount due. Most creditors accept at least 60% of the debt’s value. In exchange for a lump-sum payment, the creditor releases you from the remaining balance.

If you decide to settle your obligation, get the terms in writing. Pay the creditor before your court date. Consider working with a professional organization if you’ve never tried debt settlement before.

Our partner Solo offers a tech-based approach to debt settlement. The software helps you send and receive settlement offers until you reach an agreement. Once an agreement is reached, Solo helps you manage settlement documentation and transfer your payment securely.

You can learn more about debt settlement strategies in our guide on how to settle a debt in Idaho.

Don’t Let Debt Collectors Harass You

Collection agencies are a real pain, but you have protections under the FDCPA and Idaho state law. If you believe a debt collector’s actions break the law, take action immediately.

File a complaint with the FTC and the Idaho Attorney General’s office. Provide any evidence you have, like copies of collection letters.

If the FTC or Idaho Attorney General finds violations, they can take action against the agency. You may also be entitled to damages for violations of your rights.

Facing a debt lawsuit in Idaho? Our partner Solo helps you respond to the lawsuit and negotiate a settlement before the court date.

Frequently Asked Questions

What is the Statute of Limitations for debt collection in Idaho?

The Statute of Limitations for credit card debt in Idaho is five years. After this period, the debt is considered time-barred, and collectors cannot legally sue you for the debt, though it may still appear on your credit report.

How do I validate a debt in Idaho?

Send a Debt Validation Letter within 30 days of receiving the collection notice. Request the exact debt amount, last transaction date, debt age, and the collector's Idaho license number. The collector must provide this information or stop collection efforts.

Can debt collectors call me at work in Idaho?

Under the FDCPA, debt collectors cannot call you at work if they know your employer prohibits such calls. Inform the collector that your workplace doesn't allow personal calls, and they must stop contacting you there.

What happens if I ignore a debt collection lawsuit in Idaho?

If you ignore a debt lawsuit, the court will likely issue a default judgment against you. The collector can then garnish your wages, freeze your bank accounts, or place liens on your property. You must respond to the lawsuit within the deadline stated in your summons.

How can I file a complaint against an abusive debt collector in Idaho?

File complaints with both the Federal Trade Commission (FTC) and the Idaho Attorney General's Consumer Protection Division. Include copies of collection letters, phone records, and any evidence of harassment or deceptive practices.

Debt Collection Laws in Idaho: Know Your Rights in 2024