Tennessee Debt Collection Laws: Your Complete Guide for 2024
Tennessee residents have strong protections under both state and federal debt collection laws. The six-year statute of limitations limits how long collectors can sue you for credit card and medical debt. If collectors violate your rights or you're facing a lawsuit, free resources and legal help are available throughout Tennessee.
Respond to LawsuitWhen it comes to debt collection, Tennesseans have strong legal protections. The federal Fair Debt Collection Practices Act (FDCPA) provides your primary shield. Tennessee’s Consumer Protection Act adds extra safeguards against misconduct not covered federally.
You also benefit from clear rules about licensing and registration. Third-party debt collectors must register with the Tennessee Collection Service Board. The statute of limitations for medical debt and credit card debt is six years.
Sued by a Debt Collector in Tennessee?
Don't let a debt lawsuit lead to wage garnishment. Respond properly to the court and protect your rights under Tennessee law. Over 280,000 people have successfully defended themselves with professional help.
Answer Your LawsuitUnderstanding your rights helps you fight back against aggressive collectors. You can stop harassment, challenge unlawful practices, and protect your income.
Understanding Tennessee Debt Collection Laws
Tennessee doesn’t have a dedicated debt collection statute. Instead, the Tennessee Consumer Protection Act (TCPA) serves as your legal protection. The TCPA prohibits deceptive and unfair practices across consumer transactions, including debt collection.
You’re also protected by the FDCPA. Every Tennessee resident has these federal rights against third-party debt collectors.
How the Tennessee Consumer Protection Act Protects You
The TCPA fills gaps left by federal law. It catches misconduct the FDCPA doesn’t specifically address. The law applies to both original creditors and third-party collectors.
To use TCPA protections in court, you must show two things. First, the collection activity was unfair or deceptive. Second, it involved a consumer transaction.
The TCPA requires third-party debt collectors and debt buyers to register. You can verify a collector’s license on the Tennessee Collection Service Board website. Unlicensed collectors can be reported directly to the Board.
Collection attorneys don’t need to register. Neither do passive debt buyers. Original creditors also get an exemption unless they use a fake name to collect.
Your Federal Rights Under the FDCPA
The FDCPA works alongside Tennessee state law. It protects you from harassment and abusive collection tactics. Third-party debt collectors must follow strict rules when contacting you.
Debt collectors have specific responsibilities under federal law:
- Send you written validation notice within five days of first contact
- Provide debt details including creditor name and amount owed
- Explain your right to dispute the debt in writing
- Stop collection if you dispute in writing within 30 days
Debt collectors cannot engage in certain behaviors:
- Call before 8 a.m. or after 9 p.m.
- Contact you at work if you tell them not to
- Harass you with repeated calls or profane language
- Threaten violence or arrest
- Lie about the debt amount or their identity
- Discuss your debt with others like family or employers
- Threaten actions they can’t legally take
If a collector violates your rights, our partner Solo can help you respond and protect yourself.
Fighting Back Against Illegal Debt Collection
You have multiple options when a debt collector breaks the law. Don’t let violations go unreported. Taking action protects you and other consumers.
Filing Complaints for TCPA Violations
You can file a complaint with the Tennessee Attorney General. Their office investigates consumer protection violations. You can also sue debt collectors in state court.
To win a lawsuit, you must prove the collector knowingly deceived you. Successful plaintiffs can receive up to three times their actual damages. Courts also award attorney fees and court costs.
Reporting FDCPA Violations
Report federal violations to the Consumer Financial Protection Bureau (CFPB). The CFPB tracks complaints and investigates debt collectors. You can also sue in federal court for FDCPA violations.
Winning an FDCPA lawsuit gets you actual damages plus up to $1,000. The court adds attorney fees and court costs. You don’t need to prove you suffered financial harm to recover damages.
Tennessee Statute of Limitations on Debt
Statutes of limitations limit how long creditors can sue you. These state laws create crucial deadlines for debt collection lawsuits. After the deadline passes, the debt becomes time-barred.
Tennessee sets a six-year statute of limitations for oral and written contracts. Credit card debt falls under this category. Medical debt does too.
The clock typically starts on your last payment date. For installment loans, each payment has its own deadline. The clock starts on each installment’s due date, not when you miss payment.
Be extremely careful when talking to collectors about old debts. Acknowledging the debt or making even a small payment can restart the clock. You could accidentally revive a lawsuit you thought was dead.
Time-barred debt doesn’t disappear from your credit report automatically. Collectors can still contact you about it. They just can’t sue you successfully if you raise the statute of limitations defense.
What Debt Collectors Can Legally Do in Tennessee
Understanding legal collection tactics helps you prepare and protect yourself. Collectors start with calls and letters. They can escalate to serious legal action if you don’t respond.
Wage Garnishment Requires Court Approval
Collectors can take you to court over unpaid debts. Winning a lawsuit gives them a judgment against you. That judgment unlocks powerful collection tools.
Wage garnishment is the most common collection method after winning in court. Tennessee law limits how much collectors can take from your paycheck. Federal law also provides wage garnishment protections.
If you receive a lawsuit, don’t ignore it. You can defend yourself and potentially avoid garnishment. Our partner Solo helps you draft and file a proper court response. They’ve helped over 280,000 people handle debt lawsuits successfully.
Collectors can also pursue bank levies and property liens with a judgment. A bank levy freezes your account and withdraws money. A property lien attaches to your home or other real estate.
Car Repossession Without Warning
Auto lenders don’t need court approval to repossess your vehicle. Missing even one payment can trigger repossession. They don’t have to warn you first.
Review your auto loan contract carefully. Understanding your specific terms helps you know when repossession becomes a risk. Your loan agreement explains your rights and the lender’s rights.
Defaulting on your auto loan puts your car at immediate risk. The lender can repossess from your driveway, workplace, or any public location.
Getting Help With Tennessee Debt Problems
Debt stress doesn’t have to control your life. Free resources can help you regain financial stability. Professional guidance makes overwhelming debt manageable.
Credit Counseling and Debt Management
Start with free consumer credit counseling. Nonprofit counselors review your complete financial situation. They provide personalized strategies to tackle your specific debts.
A counselor might recommend a debt management plan. Our partner Cambridge Credit Counseling can help you lower interest rates and consolidate payments. They negotiate directly with creditors on your behalf.
Debt consolidation combines multiple debts into one payment. A debt management plan may reduce your interest rates significantly. Both options help you pay off debt faster.
When to Consider Bankruptcy
Bankruptcy gives you a legal fresh start when debt becomes unmanageable. You can eliminate most unsecured debts through Chapter 7. Chapter 13 lets you reorganize debts into an affordable payment plan.
Filing bankruptcy immediately stops all collection activity. Wage garnishments must stop. Phone calls and letters must stop. Even pending lawsuits get paused.
Bankruptcy isn’t right for everyone. Speaking with a bankruptcy attorney helps you understand your options. You can speak with a bankruptcy attorney for free to explore whether Chapter 7 or Chapter 13 makes sense for your situation.
Tennessee Legal Resources for Debt Issues
Free legal help exists across Tennessee. These organizations serve residents facing debt collection lawsuits and consumer issues.
- Help4TN offers online self-help guides and a toll-free hotline at 888-435-7486
- TN Free Legal Answers connects you with volunteer attorneys via email or chat
- Tennessee Access to Justice Initiative provides resources and referrals statewide
- Memphis Area Legal Services serves Shelby, Tipton, Fayette, and Lauderdale counties
- West Tennessee Legal Services covers 17 counties in West Tennessee
- Legal Aid Society of Middle Tennessee serves 48 counties across Middle Tennessee
- Legal Aid of East Tennessee covers 26 counties in East Tennessee
Don’t face debt collectors alone. Legal aid organizations can review your situation and explain your options. Many provide free representation for qualifying residents.