Missouri Debt Collection Laws: Know Your Rights in 2024
Missouri consumers have strong legal protections against abusive debt collectors. State laws like the Missouri Merchandising Practices Act work alongside federal laws to shield you from harassment, false statements, and unfair practices. Understanding the statute of limitations and your right to dispute debts gives you power to fight back.
Answer Your LawsuitDebt collectors calling you nonstop? Receiving threatening letters? You have legal protection in Missouri.
Both state and federal laws shield you from abusive collection tactics. You can fight back against harassment and intimidation.
Being Sued for Debt in Missouri?
Don't let collectors win by default. Respond to your lawsuit and protect your rights under Missouri law. Time is running out to file your Answer.
Respond to Lawsuit NowUnderstanding your rights helps you respond effectively when collectors come calling. Knowledge equals power in debt collection disputes.
Missouri Debt Collection Laws Overview
Missouri provides specific legal protections for consumers facing debt collection. The state takes aggressive collection tactics seriously.
The Missouri Merchandising Practices Act (MMPA) prohibits deceptive and unfair collection practices. You can sue collectors who violate your rights under the MMPA.
Missouri law requires debt collectors to provide a dispute process. Collectors must investigate your dispute and respond within a reasonable timeframe.
The state also limits how long collectors can sue you. Missouri’s statute of limitations protects you from lawsuits on old debts.
Missouri Statute of Limitations on Debt
The statute of limitations sets a deadline for debt collection lawsuits. After this period expires, collectors lose their legal right to sue you.
Missouri laws establish different timeframes for different debt types. Mo. Rev. Stat. § 516 outlines these specific deadlines.
Written agreements for money or property have a 10-year statute of limitations. Under certain circumstances, the timeframe can reduce to five years.
Statute of Limitations by Debt Type
| Debt Type | Time Limit |
|---|---|
| Oral contracts | 5 years |
| Credit card | 10 years |
| Medical | 10 years |
| Student loan | 10 years |
| Auto loan | 10 years |
| Personal loan | 10 years |
| Mortgage | 20 years |
| Judgment | 10 years |
Collectors can still contact you after the statute expires. However, they cannot sue you in court for the debt.
Fair Debt Collection Practices Act Protections
The federal Fair Debt Collection Practices Act (FDCPA) applies throughout Missouri. The law protects you from abusive collection tactics nationwide.
The FDCPA prohibits specific behaviors by third-party debt collectors. Original creditors collecting their own debts fall outside FDCPA coverage.
Prohibited Collection Tactics
Harassment: Collectors cannot use abusive language or threats. They cannot call repeatedly or contact you at inconvenient times.
False statements: Collectors cannot lie about debt amounts or consequences. They cannot impersonate law enforcement or attorneys.
Unfair practices: Collectors cannot add unauthorized fees to your debt. They cannot threaten legal action they don’t intend to take.
If you’re being sued for debt, our partner Solo can help you respond to the lawsuit. Fighting back protects your rights and gives you negotiating power.
Consumer Financial Protection Bureau Debt Collection Rule
The Consumer Financial Protection Bureau (CFPB) issued additional protections in 2021. The Debt Collection Rule clarifies how collectors can contact you.
Collectors cannot call you more than seven times in seven days. They must stop after one phone conversation about the debt.
The seven-day period resets after each successful phone conversation. Additional rules govern text messages and email communications.
Debt Settlement Laws in Missouri
Federal law regulates debt settlement companies operating in Missouri. The FTC’s Telemarketing Sales Rule applies nationwide.
Debt settlement companies face strict regulations to protect consumers. These rules prevent predatory practices in the debt relief industry.
What Debt Settlement Companies Cannot Do
Charge upfront fees: Companies cannot collect fees before settling your debt. You only pay after achieving results.
Hide information: Companies must disclose their service costs upfront. They must explain how long results take and consequences of missed payments.
Make false claims: Companies cannot misrepresent their services or results. All claims about debt reduction must be truthful and substantiated.
How to Settle Debt in Missouri
Settling your debt stops collection lawsuits and harassment. You can often pay less than the full amount owed.
Debt settlement involves offering a lump-sum payment for less than you owe. Creditors typically accept 60% or more of the original debt.
Get your settlement agreement in writing before paying anything. Pay before your court date if you’re being sued.
Professional help makes settlement negotiations easier and more effective. Technology-based solutions streamline the entire process.
Responding to Debt Lawsuits in Missouri
You must respond to debt lawsuits to protect your rights. Ignoring a lawsuit guarantees you lose the case.
File an Answer with the court within the deadline on your summons. Your Answer challenges the collector’s claims and raises legal defenses.
Common defenses include expired statute of limitations and lack of proof. Collectors must prove they own the debt and the amount is correct.
Our partner Solo helps you draft and file a proper Answer. An attorney reviews your document before filing with the court.