Kentucky Debt Collection Laws: What Collectors Can't Do to You

You get another call at 9 PM. Same collector, third time this week. They say you owe $4,800 and threaten to garnish your wages tomorrow unless you pay today. Your hands shake. You wonder if they can actually do that.

Here's what matters: Kentucky has minimal state-level debt collection protections, but federal law gives you powerful tools to stop abusive collectors. Most violations of your rights happen because collectors bet you don't know the rules. Once you do, you're in the driver's seat.

What Federal Law Actually Protects You From

The Fair Debt Collection Practices Act (FDCPA) applies to third-party debt collectors in Kentucky. That means collection agencies, debt buyers, and law firms collecting debt. It does not cover original creditors like your bank or credit card company calling you directly.

Under the FDCPA, collectors cannot:

• Call before 8 AM or after 9 PM in your time zone
• Contact you at work if you tell them your employer prohibits it
• Discuss your debt with anyone else except your attorney or spouse
• Threaten actions they cannot legally take or do not intend to take
• Use obscene language or threaten violence
• Call repeatedly to harass you
• Lie about the amount you owe or add unauthorized fees
• Falsely claim to be attorneys or government officials

If a collector violates any of these rules, you can sue them for up to $1,000 in statutory damages plus actual damages and attorney fees. You don't need to prove financial harm for the statutory amount. The violation itself is enough.

Your Debt Validation Rights in Kentucky

Within five days of first contacting you, a debt collector must send you a written validation notice. This notice must include:

• The amount of the debt
• The name of the original creditor
• A statement that you have 30 days to dispute the debt in writing
• A statement that if you don't dispute it, they'll assume the debt is valid
• A statement that if you request it, they'll provide the name and address of the original creditor (if different from the current one)

If you send a written dispute within 30 days, the collector must stop collection efforts until they mail you verification of the debt. Many collectors never send adequate verification. When that happens, they cannot legally continue trying to collect.

Send your dispute via certified mail with return receipt. Keep copies of everything. If they keep calling after receiving your dispute and before sending verification, that's an FDCPA violation.

Kentucky Statute of Limitations on Debt

Kentucky law sets time limits for how long a creditor can sue you for different types of debt. Once the statute of limitations expires, the debt becomes "time-barred." Collectors can still contact you about time-barred debt, but they cannot sue you or threaten to sue you.

Kentucky's statute of limitations for common debts:

• Credit card debt: 5 years (KRS 413.120)
• Medical debt: 5 years
• Personal loans: 15 years if written contract, 5 years if oral agreement
• Auto loans: 15 years
• Mortgage debt: 15 years

The clock starts on the date of your last payment or the date you last used the account, whichever is later. If you make even a partial payment after the debt becomes time-barred, you may restart the clock in some cases. Before paying anything on an old debt, verify whether it's still within the statute of limitations.

If a collector sues you on a time-barred debt, you must respond to the lawsuit and raise the statute of limitations as an affirmative defense. If you ignore the lawsuit, you'll lose by default judgment even if the debt is legally uncollectible.

What Time-Barred Really Means

A time-barred debt doesn't disappear. It still exists. The collector can still report it to credit bureaus (for up to 7 years from the date of first delinquency). They can still call you. They just can't sue you successfully if you raise the statute of limitations defense.

Some collectors will pressure you to pay time-barred debts without mentioning they can't sue. That's legal as long as they don't threaten a lawsuit. If they do threaten legal action on a time-barred debt, that's an FDCPA violation.

How to Stop Debt Collectors From Contacting You

You have an absolute right to stop a debt collector from contacting you. Send a written "cease and desist" letter via certified mail. Once they receive it, they can only contact you to:

• Confirm they received your letter and will stop contacting you
• Notify you of specific legal action they intend to take (like filing a lawsuit)

Stopping contact doesn't make the debt go away. If the debt is valid and within the statute of limitations, the collector can still sue you. But many collectors won't bother, especially on smaller debts. They'd rather spend their time on people who answer the phone.

If you're considering bankruptcy, stopping collector contact gives you breathing room to evaluate your options without harassment.

What Happens If You're Actually Sued

If a collector files a lawsuit against you in Kentucky, you'll be served with a summons and complaint. You typically have 20 days to file an answer with the court. Do not ignore this. If you don't respond, the collector wins by default and can garnish your wages or bank account.

In your answer, you can raise defenses like:

• The statute of limitations has expired
• You don't owe the debt
• The amount claimed is wrong
• The collector doesn't have proper documentation proving you owe the debt

You can also negotiate a settlement before or after being sued. Many collectors will accept 40-60% of the balance if you can pay a lump sum. Get any settlement agreement in writing before you pay.

If a judgment is entered against you, Kentucky law protects certain income and assets from collection:

• 75% of your disposable earnings are exempt from wage garnishment (the greater of 75% or 30 times the federal minimum wage per week)
• Social Security benefits are fully exempt
• Veterans benefits are fully exempt
• Unemployment and workers' comp are fully exempt
• Retirement accounts like 401(k)s and IRAs have significant protections

If your income is entirely from exempt sources (Social Security, disability, veterans benefits), you're considered "judgment proof." Collectors can get a judgment but can't collect. Filing bankruptcy may not even be necessary if you have no non-exempt assets or income.

When Kentucky State Law Actually Applies

Kentucky's consumer protection statute (KRS 367.170) prohibits unfair, false, misleading, or deceptive acts in trade or commerce. This can sometimes apply to debt collection practices, but the law is vague and rarely used compared to the FDCPA.

Kentucky does not have a separate state law specifically regulating debt collection the way states like California or New York do. For practical purposes, you'll rely almost entirely on federal protections.

One Kentucky-specific rule: debt collectors must be licensed by the state if they operate from within Kentucky. If an out-of-state collector is calling you, they don't need a Kentucky license.

How to Document FDCPA Violations

If you think a collector is violating federal law, document everything:

• Save all voicemails. Record the date, time, and content.
• Log every call. Note the date, time, who called, what they said, and any threats or lies.
• Keep all letters and emails.
• Note if they called before 8 AM or after 9 PM.
• Write down if they discussed your debt with family members, neighbors, or your employer.

You can sue a debt collector for FDCPA violations in federal or state court within one year of the violation. Many consumer attorneys take these cases on contingency, meaning you pay nothing upfront. If you win, the collector pays your attorney fees.

You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) and the Kentucky Attorney General's Office. These agencies don't get you money, but they can investigate and take action against repeat offenders.

What to Do Right Now

If you're being contacted by a debt collector in Kentucky:

Step 1: Request written validation of the debt if you haven't received it. Do this within 30 days of first contact if possible.

Step 2: Check if the debt is past the statute of limitations. If it's more than 5 years old for credit card or medical debt, it may be time-barred.

Step 3: Document every contact. You may have grounds for an FDCPA lawsuit.

Step 4: Decide whether to negotiate, dispute, or ignore. If the debt is valid and within the statute of limitations, you can often settle for less than the full amount. If it's time-barred or you're judgment proof, you may choose to do nothing.

Step 5: If you're sued, respond. File an answer even if you can't afford a lawyer. Many courts have forms you can use.

If debt collectors are the least of your problems because you're drowning in multiple debts, see if bankruptcy might help. Chapter 7 wipes out most unsecured debts in 3-4 months. Chapter 13 stops lawsuits and gives you 3-5 years to catch up on secured debts like your house or car.

You Have More Power Than You Think

Debt collectors operate on volume. They send thousands of letters, make thousands of calls, and hope enough people pay to make it profitable. When you know your rights and assert them, you stop being an easy target.

Most collectors will move on to easier marks if you dispute the debt in writing, demand validation, or send a cease-and-desist letter. If they don't, you may have a lawsuit worth $1,000 plus actual damages.

You didn't create these protections. Congress did, because debt collection abuse was rampant. Use the tools you have.