The Arkansas Fair Debt Collections Practices Act 17-24-101 is defined as, “used in this chapter, unless the context otherwise requires, "collection agency" means any person who works with or employs one (1) or more other persons, or any partnership, corporation, or association which engages in the collection of delinquent accounts, bills, or other forms of indebtedness, or any person, partnership, corporation, or association using a fictitious name or any name other than their own in the collection of their own accounts receivable, or any person, partnership, corporation, or association which solicits claims for collection.”
The Arkansas Fair Debt Collections Practices 17-24-102 offers specific exemptions and provisions not applicable to:
- One employees as a single creditor
- Banks, savings and loan associations and trust companies
- Independent companies conducting an escrow business
- Licensed real estate brokers and agents in which claims are in connection with the broker or agent’s real estate business
- Telegraph and express companies subject to public relation/supervision
- Lawyer handling collections in their own names and not through a collection agency
- Firms, people or associations handling claims under court order
- Any person, firm or association that purchases the account prior to delinquency cannot pursue claims
According to Arkansas Fair Debt Collection Practices Act 17-24-103/fines and penalties, debt collectors, collection agencies or corporations must posses a valid license. Any party in violation will be considered to be guilty of a misdemeanor and fined up to $500.
Arkansas Wage Garnishment Exemptions
The state of Arkansas provides certain exemptions for wage garnishment from creditors in an attempt to collect a debt:
- Pensions/retirement benefits including public employee pensions
- Limited protection for certain private retirement accounts/benefits or IRAs
- Public benefits or assistances such as public assistance, worker’s compensation, unemployment and crime victim’s compensation
- Disability and life insurance benefits, annuity and fraternal society benefits
In general, Arkansas debt relief protects less types of non-wage, non-salary income than most states.
Arkansas Statutes of Limitations
Arkansas statue of limitations (SOL) is three years for an open account (with the exception to medical accounts, which is two years). For written contracts the SOL (4-3-118) is five years, however partial payment prevents the statue from running.
Arkansas Credit Card Debt Relief Act of 2010
The Credit Card Debt Relief Act of 2010 has streamlined the methods for repaying debt and regulated how collectors work with debtors. The Act has impacted debt relief collections several ways:
- The number of fraudulent or weak performing credit card companies are gone
- Reduces the chances of falling victim to fraudulent debt settlement companies due to new Federal Trade Commission (FTC) reforms
- Increased, open communication from creditors--more information is provided to help you eliminate your loans
- Debt settlement companies cannot request upfront fees from clients