Connecticut Debt Collection Laws: Know Your Rights
Connecticut provides strong protection against debt collector harassment through state and federal laws. You have the right to dispute debts, request licensing information, and sue collectors who violate your rights. If you're overwhelmed by debt, free credit counseling or bankruptcy may provide the fresh start you need.
Answer Your LawsuitConnecticut protects you with robust debt collection laws. You get three layers of protection against collector harassment.
The federal Fair Debt Collection Practices Act works alongside two state laws. Together, they shield you from abusive practices and unfair tactics.
Facing a Debt Collection Lawsuit in Connecticut?
Connecticut collectors can garnish wages if they win in court. Respond to your summons now to protect your paycheck and negotiate better terms.
Respond to LawsuitWhat Are the Debt Collection Laws in Connecticut?
Connecticut residents benefit from three major protection laws:
- The federal Fair Debt Collection Practices Act (FDCPA)
- Connecticut’s Creditors’ Collections Practices Act (CCPA)
- Connecticut’s Consumer Collection Agency (CCA) law
How the FDCPA Protects You
The Fair Debt Collection Practices Act protects consumers nationwide from third-party collector abuse.
Key protections include strict rules about when collectors can contact you. They cannot call before 8 a.m. or after 9 p.m.
Debt collectors must identify themselves in every communication. They must send written validation of your debt within five days.
The law prohibits harassment, threats, and deceptive practices. Collectors cannot falsely claim to be attorneys or government representatives.
They cannot threaten actions they don’t intend to take. Using profane language or repeatedly calling to annoy you is illegal.
Connecticut Debt Collection Laws Provide Further Protections
Connecticut goes beyond federal protections. The state has two powerful laws protecting consumers.
The Creditors’ Collections Practices Act (CCPA)
The CCPA mirrors the federal FDCPA but covers more ground. Here’s the key difference: it applies to original creditors too.
The FDCPA only regulates third-party collectors. The CCPA protects you from harassment by original creditors and debt buyers.
No matter who contacts you about debt, you maintain legal rights. Both original lenders and collection agencies must follow these rules.
The Consumer Collection Agency (CCA) Law
The CCA prohibits collection agencies from adding unauthorized fees. Even authorized fees cannot exceed 15% of the full payment.
Collection agencies must follow your original debt contract terms. If the contract doesn’t allow extra fees, collectors cannot charge them.
Review your bills to verify that collection fees stay under 15%. The CCA also requires third-party collectors to have state licenses.
Connecticut Requires Debt Collectors To Be Licensed
Connecticut’s CCA law requires third-party debt collectors to hold state licenses. Collection agencies must be licensed to operate here.
Some exceptions exist, but the rule applies broadly. Even agencies without physical Connecticut offices need licenses.
Ask for the Debt Collection Agency’s Licensing Information
Debt collectors have the right to pursue unpaid debts. You should expect them to exercise this right.
If you’re contacted about unfamiliar debt, assert your rights immediately. Request the collector’s licensing number.
Getting licensing information helps you verify the company’s legitimacy. It also helps you avoid debt collection scams.
Include a licensing information request in your debt verification letter. Writing a debt verification letter protects your rights and starts the dispute process.
What Can You Do if a Debt Collector Breaks the Law?
Collectors who violate the law can be reported and sued. You have multiple options to hold them accountable.
Call outside normal hours is illegal. Harassment, abuse, or deceptive practices violate your rights.
You can file a consumer collection agency complaint online through Connecticut’s Department of Banking. Call them at 860-240-8170 or email banking.complaints@ct.gov.
You can also file a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB works with the Federal Trade Commission to protect consumers.
If the original creditor violates the CCPA, you can sue in state court. You may recover actual damages, attorney fees, and up to $1,000 additional compensation.
You only have one year from the violation to file a lawsuit. If a third-party agency violates the FDCPA, you can file a lawsuit in federal court.
What Is the Statute of Limitations for Debt Collection?
Connecticut’s statute of limitations limits how long collectors can sue you. Different debt types have different time limits.
Oral contract debt has the shortest statute at three years. Credit card debt and medical debt both have six-year statutes.
| Type of Debt Contract | Statute of Limitations |
|---|---|
| Credit card contracts (written) | 6 years |
| Medical debt contracts (written) | 6 years |
| Oral contracts | 3 years |
| Contracts for sale of goods | 4 years |
When Does the Statute of Limitations Start?
The statute typically begins when you default on repayment. Default often happens after missing one or more monthly payments.
Check your contract terms to see when default occurs. Knowing your statute of limitations provides a strong legal defense.
Waiting out the statute is rarely wise. Late payments damage your credit report and hurt your score.
What Are Debt Collectors Allowed To Do?
Laws regulate harassment and deception, but collectors can still contact you. They may eventually take you to court if attempts fail.
If collectors win a lawsuit, they can access your paycheck or bank account. Wage garnishment or bank levy allows them to collect directly.
They may place a lien on your personal property. The debt gets repaid when you sell the property.
Connecticut limits how much of your paycheck can be garnished. The most important action you can take is answering the court summons.
Answer the summons by filing required paperwork with the court. Deliver copies to the person suing you as well.
Learn more in our guide to answering a Connecticut court summons. If you need help but cannot afford a lawyer, our partner Solo can help you respond to lawsuits and settle debts.
Need Help With Debt Relief? Here Are Your Options
Consumer debt is rising across the U.S. You’re not alone if you struggle with credit card or medical bills.
Get free help from a consumer credit counselor. These nonprofit professionals help individuals manage debt and reach financial goals.
A credit counselor reviews your financial situation with you. They suggest debt relief options like debt management plans or consolidation.
Our partner Cambridge Credit Counseling can help you create a payment plan and lower your interest rates.
Bankruptcy filings are rising alongside consumer debt. Filing Chapter 7 bankruptcy can eliminate credit card and medical debt.
Bankruptcy gives you a financial fresh start. It stops all collection activities through the automatic stay.
Free Legal Services & Legal Aid
- Connecticut Legal Services: The state’s largest legal aid agency providing free or low-cost services
- Pro Bono Organizations from Connecticut Bar Association: Comprehensive list of volunteer attorneys and services
- Legal Clinics from CT Judicial Branch: Monthly in-person help from volunteer attorneys for small claims
More Information About Debt Collection
- Debt Collection: Know Your Rights: Easy-to-read information from CTLawHelp.org
- Consumer Collection Practices from Connecticut’s Department of Banking
- Connecticut Law About Debt Collection from CT Judicial Branch Law Libraries
- Connecticut Practice Book: Comprehensive resource for civil case rules and procedures