Debt collection is a common practice worldwide and the United States is no exception, each state has its own set of laws governing how creditors and debt collectors can pursue outstanding debts. Let us look at the laws governing debt collection in the state of Florida, and understand why they are essential for creditors and debtors alike. Here, we’ll dig deeper into the key aspects of Florida debt collection laws to provide a comprehensive overview.
The Statute of Limitations
The statute of limitations is a vital component of Florida debt collection laws. This legal timescale establishes the maximum period for creditors to pursue outstanding debts through legal means. The statute of limitations in Florida varies depending on the type of debt. The restriction for consumer debts such as credit card debt, home loans, and medical bills is generally 5 years.
Credit collection services are generally forbidden from pursuing legal action to collect a debt once the statute of limitations has elapsed. Making even a partial payment or acknowledging the obligation in writing, might restart the clock on the statute of limitations, allowing creditors more time to collect.
Florida adheres to the federal Fair Debt Collection Practices Act (FDCPA), which establishes national standards for ethical debt collection. Debt collection services in Florida must follow certain federal standards to ensure that they do not participate in abusive, deceptive, or unfair debt-collecting methods. This includes restrictions against debt harassment, threats, or fraudulent statements.
To know more about the Fair debt collection practices Act (FDCPA) visit our official website.
The amount of wages that can be garnished to satisfy a debt is limited under Florida debt collection laws. A debt collection agency can typically garnish no more than 25% of an individual’s disposable income. This percentage, however, may fluctuate depending on the debtor’s unique circumstances.
What Makes FCS Unique
We’re dedicated to assisting clients, offering guidance, and leveraging omnichannel customer engagement to facilitate debt resolution.
First Credit Services is the best option for debt collection in Florida. We provide effective and ethical solutions for creditors, assuring a fair and legally compliant procedure. We are committed to strict adherence to Florida debt collection laws. Trust us for professional debt collection services in Florida.
To learn more about how First Credit Services can help your organization increase debt collection, reach out to us now!