Nebraska Debt Collection Laws: Your Consumer Rights

Dealing with aggressive debt collectors can feel overwhelming. Constant phone calls, threatening letters, and intimidation tactics wear you down.

Good news: Nebraska offers strong protections against abusive collection practices.

Sued by a Debt Collector in Nebraska?

You have 30 days to respond to your summons. Every day counts when facing a debt lawsuit deadline.

Answer Your Lawsuit

You have rights under both state and federal law. These laws limit what collectors can do and say.

Nebraska State Laws Protect Consumers From Harassment

Nebraska maintains several laws to shield you from unscrupulous collectors.

The Nebraska Consumer Protection Act (NCPA) prohibits deceptive trade practices. Collectors cannot make false representations or use unfair tactics against you.

Nebraska also requires all debt collection agencies to hold proper licenses. The state enforces this through Neb. Rev. Stat. §§45-601 to 45-623.

Nebraska Installment Loan Act Limits Collector Actions

The Nebraska Installment Loan Act (NILA) specifically protects consumers from harassment. Neb. Rev. Stat. §45-1047(2) prohibits these collection tactics:

Using or threatening violence against you
Using obscene or profane language
Calling you at inconvenient times
Lying about the amount or legal status of your debt
Pretending to be an attorney
Threatening arrest or jail time falsely
Threatening actions they cannot legally take
Falsely accusing you of criminal activity
Publishing false credit information about you
Using fake official documents to deceive you
Adding unauthorized charges to your debt
Cashing post-dated checks early without notice
Requesting post-dated checks to threaten criminal charges
Making you pay for collect calls without disclosure
Sending debt details on postcards
Contacting you at work after employer prohibition

Violations of these rules give you legal recourse. You can recover compensatory damages plus $500 to $1,000 in liquidated damages. You can also recover attorney fees and costs.

Nebraska Caps Interest Rates at 16%

Nebraska law sets a maximum interest rate of 16% annually on consumer loans.

Charging higher rates constitutes usury. Usurious debts may become legally uncollectible.

You should verify the interest rate on any debt. Creditors sometimes violate this cap.

Federal FDCPA Adds Another Layer of Protection

The Fair Debt Collection Practices Act (FDCPA) protects all Americans, including Nebraska residents.

The FDCPA prohibits harassment, deception, and unfair practices. Collectors cannot threaten you with actions they cannot take. They cannot misrepresent the amount you owe.

The law restricts when and how collectors can contact you. They cannot call before 8 a.m. or after 9 p.m. They must stop calling your workplace if you request it.

If you need help responding to collector harassment, our partner Solo can guide you through the process.

Statute of Limitations Stops Old Debt Lawsuits

Nebraska law limits how long collectors can sue you for debt.

The statute of limitations creates a deadline for legal action. After this period expires, collectors lose their right to sue.

Most consumer debts in Nebraska have a five-year statute of limitations. The clock starts from your last payment date.

Verbal agreements have a shorter four-year limitation period.

Nebraska Statute of Limitations by Debt Type

Debt Type	Time Limit
Oral contracts	4 years
Credit card debt	5 years
Medical debt	5 years
Student loans	5 years
Auto loans	5 years
Personal loans	5 years
Mortgages	5 years
Judgments	5 years

Understanding these deadlines helps you defend against time-barred debt lawsuits.

Nebraska Wage Garnishment Laws Protect Your Income

Nebraska law limits how much creditors can garnish from your paycheck.

These protections ensure you maintain adequate income for basic living expenses. The law exempts a portion of your wages from garnishment.

Federal law also protects a percentage of your income. Creditors can only garnish the lesser of the two amounts.

What to Do When Collectors Sue You

Getting served with a debt lawsuit feels scary. You might want to ignore it.

Never ignore a lawsuit. Ignoring it guarantees you lose.

You must respond within the deadline stated in your summons. Nebraska typically gives you 30 days to answer.

Your Answer document challenges the collector’s claims. You can dispute the debt amount, ownership, or whether the statute of limitations expired.

If you need help crafting your response, our partner Solo walks you through each step of preparing your Answer.

Settling Debt Often Makes Sense

Fighting a lawsuit takes time and energy. Sometimes settling makes more financial sense.

Debt settlement involves negotiating a reduced payoff amount. Creditors often accept 40% to 60% of the original balance.

You pay the agreed amount in a lump sum. In exchange, the creditor dismisses the lawsuit and forgives the remaining balance.

Always get settlement terms in writing before paying. Never trust verbal promises from collectors.

Pay before your court date to get the lawsuit dismissed. Document everything for your records.

How Settlement Negotiations Work

Start by determining what you can realistically afford. Gather information about your debt’s age and ownership.

Make an initial offer around 30% to 40% of the balance. Expect the collector to counter higher.

Negotiate back and forth until you reach agreement. Stay firm on your budget limits.

Request written confirmation before sending payment. The agreement should state the amount you’ll pay and confirm full debt satisfaction.

Settlement negotiations can feel intimidating. Having professional support helps you navigate the process confidently.

Frequently Asked Questions

What is the statute of limitations on debt in Nebraska?

Most consumer debts in Nebraska have a five-year statute of limitations from your last payment date. Verbal agreements have a four-year limit. After this period expires, collectors cannot sue you for the debt.

Can debt collectors call me at work in Nebraska?

Debt collectors cannot contact you at work if your employer prohibits such calls. You can also tell collectors directly not to call you at work. Nebraska law prohibits collectors from continuing workplace contact after receiving this notification.

What should I do if a debt collector violates Nebraska law?

Document all violations with dates, times, and details of what happened. You can file a civil lawsuit against the collector and potentially recover $500 to $1,000 in damages plus attorney fees. Consider consulting with an attorney who handles FDCPA cases.

How do I respond to a debt lawsuit in Nebraska?

You must file an Answer with the court within the deadline stated in your summons, typically 30 days. Your Answer should respond to each claim in the complaint and raise any defenses like statute of limitations. Never ignore a lawsuit, as this guarantees a judgment against you.

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

Yes, creditors often accept 40% to 60% of the original balance as settlement. You negotiate a reduced amount, pay it in a lump sum, and the creditor forgives the remaining balance. Always get settlement terms in writing before paying.

Nebraska Debt Collection Laws: Know Your Rights