Montana Debt Collection Laws: Your Rights and Deadlines (2025)

A debt collector called you at 10 PM last night. They threatened to garnish your wages over a credit card bill from 2017. They refused to send proof you actually owe the money.

If you live in Montana, that collector just broke at least three laws.

You have more power than you think. Federal law and Montana statutes give you specific rights when dealing with debt collectors. Knowing these rules can stop harassment, reduce what you owe, and in some cases, get the debt thrown out entirely.

When Montana Debt Collectors Cross the Line

The Fair Debt Collection Practices Act (FDCPA) is a federal law that applies everywhere, including Montana. It sets clear boundaries for third-party debt collectors—the agencies that buy old debts or collect on behalf of creditors.

Under the FDCPA, collectors cannot:

• Call before 8 AM or after 9 PM (Mountain Time in Montana)
• Contact you at work if you tell them your employer prohibits it
• Use profanity, threats, or intimidation
• Claim to be law enforcement or a government agency
• Discuss your debt with family, neighbors, or coworkers
• Demand payment on a debt you've disputed without sending proof first
• Add unauthorized fees or interest to your balance

If a collector violates the FDCPA, you can sue them. Montana residents can recover up to $1,000 in statutory damages per lawsuit, plus actual damages if you suffered financial harm or emotional distress. You don't need to prove you were injured,just that they broke the rules. The collector also pays your attorney fees if you win.

This makes the FDCPA one of the few consumer laws where fighting back costs you nothing but time.

How to Stop the Calls

You have the right to tell a debt collector to stop contacting you. Send a cease-and-desist letter by certified mail. After they receive it, they can only contact you to confirm they've stopped or to notify you of specific legal action, like a lawsuit.

This doesn't make the debt vanish. But it does give you breathing room to decide your next move without daily harassment.

Montana's Statute of Limitations on Debt

Montana law limits how long a creditor or collector can sue you for unpaid debt. Once the statute of limitations expires, the debt becomes "time-barred." You still owe it technically, but they can't take you to court to collect.

Here are Montana's deadlines by debt type:

• Credit card debt: 8 years
• Medical debt: 8 years
• Auto loans: 8 years
• Personal loans: 8 years
• Oral contracts: 5 years
• Written contracts: 8 years

Montana follows an 8-year statute of limitations for most written contracts, which includes credit cards, medical bills, and installment loans. This is longer than many states,most cap it at 3 to 6 years.

When the Clock Starts

The statute of limitations begins on the date of your last payment or the date you last used the account, whichever is later. If you made a payment on a credit card in January 2017 and never used it again, the clock started in January 2017. The debt becomes time-barred in January 2025.

Once a debt is time-barred, collectors often keep calling. They know most people don't track statute of limitations dates. If they sue you anyway, you must raise the expired statute as a defense in court. The judge won't automatically dismiss the case,you have to show up and argue it.

Don't Restart the Clock

Making a payment on an old debt can restart the statute of limitations in Montana. Even a $10 payment can reset the entire 8-year countdown. Same goes for signing a new agreement or acknowledging the debt in writing.

Before you pay anything on a debt that's more than a few years old, check the date. If the statute is about to expire, paying could give the collector eight more years to sue you.

What Happens When a Collector Sues You in Montana

If a debt collector files a lawsuit in Montana, you'll receive a Summons and Complaint. You typically have 20 days to file an Answer with the court. Miss that deadline, and the collector wins by default. They can then garnish your wages or bank accounts.

Your Answer is where you raise defenses like:

• The statute of limitations has expired
• You never received proof you owe the debt
• The amount they claim is wrong
• The debt was discharged in bankruptcy
• You're a victim of identity theft

Montana courts don't require you to hire an attorney, but debt collection cases move fast. If you can't afford a lawyer, contact Montana Legal Services Association at 1-800-666-6899. They provide free legal help to low-income residents.

Wage Garnishment Limits in Montana

If a collector wins a judgment, they can garnish your wages. Montana law follows federal limits: collectors can take the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage.

As of 2025, that means collectors can garnish up to 25% of your paycheck, or everything above $217.50 per week, whichever is less. Social Security, disability, and most retirement income are protected from garnishment in Montana.

The Fair Credit Reporting Act and Your Credit Report

The Fair Credit Reporting Act (FCRA) governs how debts appear on your credit report. Under the FCRA:

• A debt can stay on your credit report for 7 years from the date of first delinquency
• You can dispute inaccurate information directly with the credit bureaus
• Creditors must verify disputed debts within 30 days or remove them
• Paid collections remain on your report for 7 years but show as "paid" or "settled"

In Montana, even if the statute of limitations has expired, the debt can still appear on your credit report if it's less than 7 years old. A time-barred debt might not be legally collectible, but it can still damage your credit score.

Disputing Errors

If a debt on your credit report is wrong,wrong amount, wrong creditor, already paid,you can dispute it. Send a dispute letter to all three credit bureaus: Experian, Equifax, and TransUnion. Include copies of proof, like payment receipts or court documents.

The bureau has 30 days to investigate. If they can't verify the debt, they must remove it. This process costs nothing and can raise your credit score significantly if the debt is deleted.

Medical Debt in Montana

Montana hospitals and medical providers often sell unpaid bills to collection agencies. Medical debt follows the same 8-year statute of limitations as other written contracts. However, medical debt has some unique protections:

• Many hospitals offer charity care or payment plans before sending accounts to collections
• Under federal rules effective in 2023, medical debts under $500 no longer appear on credit reports
• Montana law requires hospitals to provide itemized bills upon request

If you're facing a medical debt lawsuit, request an itemized bill. Billing errors are common. You might find duplicate charges, services you never received, or incorrect insurance adjustments. These errors can become defenses in court.

When to Consider Bankruptcy

Sometimes the debt is too large, the lawsuits are piling up, and negotiation isn't an option. That's when bankruptcy becomes the practical choice.

Chapter 7 bankruptcy can wipe out credit card debt, medical bills, and personal loans in 3 to 4 months. Montana's bankruptcy exemptions let you keep:

• Up to $350,000 in home equity
• Up to $7,000 in vehicle equity
• Most household goods and clothing
• Tools of your trade up to $7,000

If you're facing wage garnishment or a lawsuit on a debt you can't pay, bankruptcy stops the collection process immediately. Montana residents can file bankruptcy online through qualified legal document preparers, often for a fraction of attorney costs.

Chapter 13 bankruptcy works differently. You propose a 3- to 5-year repayment plan based on your income. It's useful if you're behind on mortgage or car payments and need time to catch up. At the end of the plan, remaining unsecured debt gets discharged.

To see if you qualify for Chapter 7, try our free bankruptcy screener. It takes two minutes and gives you an honest assessment of your options.

How to Demand Debt Validation

When a collector first contacts you, they must send a written notice within five days. That notice must include the amount owed, the creditor's name, and a statement that you can dispute the debt.

You have 30 days to send a debt validation letter demanding proof. Once you send it, the collector must stop all collection efforts until they provide:

• A copy of the original contract
• A detailed account statement
• Proof they have the right to collect

If they can't provide this proof, they must stop pursuing you. Many collectors can't validate debts, especially old ones that have been sold multiple times. Validation requests are one of the most effective tools you have.

Negotiating a Settlement

Debt collectors buy old debts for pennies on the dollar. A $5,000 credit card debt might have been purchased for $200. That gives them room to negotiate.

If you have cash saved up, you can often settle for 30% to 50% of the balance. Here's how:

• Make the first offer. Start at 20% of the balance.
• Get everything in writing before you pay.
• Never give collectors direct access to your bank account.
• Request a "paid in full" letter, not a "settled" notation.

Montana law doesn't require collectors to accept settlement offers, but they often will, especially if the debt is old or the statute of limitations is close to expiring.

Resources for Montana Residents

If you're dealing with debt collectors in Montana, these resources can help:

• Montana Legal Services Association: Free legal aid for low-income residents. Call 1-800-666-6899.
• Montana Office of Consumer Protection: File complaints against abusive debt collectors. Visit dojmt.gov/consumer.
• National Consumer Law Center: Publishes guides on debt collection defense. Visit nclc.org.

Next Steps

Montana debt collection laws give you leverage, but only if you act. Start by documenting every call, letter, and threat. Send validation letters to collectors who haven't provided proof. Raise the statute of limitations if a lawsuit is filed on an old debt.

If the debt is legitimate and you can't pay, consider settlement or bankruptcy. The worst choice is ignoring the problem. Collectors won't stop, and judgments don't expire in Montana.

You're in the driver's seat. Use the tools the law gives you.