Tennessee Debt Collection Laws: Your Rights and Protections

When debt collectors call, you have rights. Tennessee protects you through the federal Fair Debt Collection Practices Act (FDCPA) and the Tennessee Consumer Protection Act (TCPA). These laws limit what collectors can do, require many to register with the state, and give you clear ways to fight back if they cross the line.

The statute of limitations for medical debt and credit card debt is six years in Tennessee. After that, collectors can still ask for payment, but they can't sue you to collect.

Tennessee's Debt Collection Framework

Tennessee doesn't have a dedicated debt collection statute. Instead, the Tennessee Consumer Protection Act covers unfair or deceptive business practices, including certain collection behaviors. This state law works alongside the federal FDCPA to create layered protections.

The TCPA applies to both original creditors (companies you borrowed from directly) and third-party collectors. To qualify for protection, your debt must stem from a consumer transaction: credit cards, personal loans, medical bills, or similar obligations. The collector's conduct must be unfair or deceptive.

Collector Registration Requirements

Most third-party debt collectors and debt buyers must register with the Tennessee Collection Service Board before collecting debts in the state. This requirement doesn't apply to collection attorneys, original creditors, or companies that own debt but use a licensed agency or attorney to collect it (unless they misrepresent who they are when contacting you).

You can verify a collector's license on the Tennessee Collection Service Board's website. If they're not properly licensed, file a complaint with the board. Unlicensed collection activity violates state law.

How the FDCPA Protects You

The Fair Debt Collection Practices Act is a federal law that applies in all 50 states. It sets specific rules for third-party debt collectors (not original creditors). Here's what it requires:

What Collectors Must Do

• Send validation notices: Within five days of first contacting you, collectors must send written details about the debt: amount owed, creditor name, and your right to dispute it.
• Stop contact on request: If you send a written cease-and-desist letter, they must stop contacting you (except to confirm they received your letter or notify you of specific actions like a lawsuit).
• Verify disputed debts: If you dispute the debt in writing within 30 days, they must send proof before continuing collection efforts.

What Collectors Cannot Do

• Call before 8 a.m. Or after 9 p.m. In your time zone
• Contact you at work if you tell them your employer doesn't allow it
• Harass you with repeated calls or abusive language
• Threaten actions they can't or won't take (like arrest or immediate lawsuit)
• Lie about the amount you owe or who they are
• Discuss your debt with family, friends, neighbors, or coworkers (except your spouse or attorney)
• Contact you directly if you have an attorney representing you on the debt

If a collector violates the FDCPA, you can sue them within one year. Courts can award actual damages, up to $1,000 in statutory damages even if you can't prove financial harm, and attorney fees.

Statute of Limitations on Tennessee Debt

The statute of limitations for most consumer debts in Tennessee is six years. This clock starts from the date of your last payment or the date you last acknowledged the debt in writing.

After six years, the debt becomes "time-barred." Collectors can still contact you and ask for payment, but they cannot sue you to collect. If they do file a lawsuit, you must respond and raise the statute of limitations as a defense. If you don't respond, the court may grant a default judgment.

Important: Making a payment or acknowledging the debt in writing can restart the six-year clock. Be cautious about any communication that could revive an old debt's enforceability.

What to Do When a Collector Breaks the Rules

If a debt collector violates your rights, you have multiple options depending on the violation:

Federal Violations (FDCPA)

Report harassment, illegal contact times, threats, or false statements to the Consumer Financial Protection Bureau (CFPB). The CFPB investigates complaints and can penalize collectors who repeatedly break federal rules.

State Violations (TCPA)

File a complaint with the Tennessee Attorney General's Office for unfair or deceptive practices, like misrepresenting the amount you owe or using misleading collection tactics. The Attorney General can investigate and take enforcement action.

Licensing Violations

If a collector isn't registered with the Tennessee Collection Service Board, report them directly to the board. Unlicensed collection activity is illegal in Tennessee.

Legal Action

You can sue a debt collector who violates the FDCPA. If successful, courts may award actual damages (financial harm), statutory damages up to $1,000, and attorney fees. You must file within one year of the violation.

Responding to a Debt Collection Lawsuit

If a collector sues you, respond within the deadline stated in the summons (usually 20-30 days). Ignoring the lawsuit guarantees a default judgment, which allows the collector to garnish your wages or levy your bank account.

Common defenses in Tennessee debt collection lawsuits:

• Statute of limitations: The debt is more than six years old
• Mistaken identity: The debt isn't yours
• Incorrect amount: They're claiming more than you owe
• Lack of proof: The collector can't prove you owe the debt
• Already paid: You settled or paid the debt

If you're facing a lawsuit and overwhelmed by debt, Chapter 7 bankruptcy stops collection lawsuits through an automatic stay. Most unsecured debts (credit cards, medical bills, personal loans) are discharged, meaning you no longer owe them.

Tennessee Bankruptcy Exemptions

Tennessee allows you to choose between state exemptions and federal bankruptcy exemptions. This flexibility lets you protect more of your property when filing bankruptcy.

Key Tennessee exemptions (2026 amounts):

• Homestead: $5,000-$25,000 depending on property type and size
• Vehicle: No specific exemption; use wildcard
• Personal property: $4,000 wildcard exemption
• Wages: Greater of 75% of disposable earnings or 30 times the federal minimum wage
• Public benefits: Social Security, unemployment, workers' comp fully exempt

Federal exemptions are often more generous. Most Tennessee filers benefit from choosing federal exemptions, which include a $29,275 homestead exemption and a $4,000 vehicle exemption (2026 amounts).

Check your eligibility for Chapter 7 to see if bankruptcy can eliminate your debt and stop collection harassment.

The Bottom Line

Tennessee law and the FDCPA give you clear rights against debt collector abuse. Most third-party collectors must be licensed by the state. You can dispute debts, demand proof, and stop contact. If they break the rules, you can report them or sue. Most consumer debts in Tennessee have a six-year statute of limitations—after that, collectors can't sue you, even if the debt is unpaid.

This article is for educational purposes only and does not constitute financial or legal advice. Debt collection laws can be complex, and your specific situation may have unique factors. Consult a licensed attorney or financial advisor for guidance on your case.