Hawaii debt laws are similar to the federal Fair Debt Collection Practices Act (FDCPA). Hawaii Revised Statutes Sections 443B-1 to 443B-20 address harassment and improper practices by debt collections companies and creditors. Examples of these rules include
- Collectors cannot trick you into paying for collect calls or telegrams
- Debt collectors cannot threaten and misrepresent who they are or what their company does
- Collectors cannot send correspondence in postcard form and can only display the agency’s name and address on the envelope
- You cannot be charged additional fees from a collector for your debt
- Collectors cannot publish or post your name
- If you are being represented by an attorney, the collector or agency must work through that attorney and not you
- You can only be contacted by a collector between 8am and 9pm (unless you’ve agreed to another time)
- You have up to 30 days to dispute a debt--once the written dispute is set in motion the collector cannot contact you until it provides you with documentation
Consumers in Hawaii can sue for rule violation under the Unfair and Deceptive Acts and Practices law. A lawsuit in the debtor’s favor may result in the award of actual damages or $1,000 (whichever is higher), in addition to attorney fees. If you are over 62 years-old the judge has the discretion to award you damages of up to $10,000 in addition to being able to sue for violation of the Fair Debt Collection Practices Act.
Hawaii Statue of Limitations (SOL)
Hawaii has a six-year statue of limitation (SOL) on open accounts such as credit cards, which means you can only be contacted for up to six years regarding an outstanding credit card debt. For written contracts you have up to six years.
In terms of wage garnishment, federal law applies, however Hawaii has provided for additional exemptions such as:
- Pensions and retirement benefits--pubic or state workers such as police and firefighters
- Public benefits/assistance--in addition to Social Security, workers’ compensation, unemployment and work assistance are protected
- Insurance benefits, disability, annuity contracts (if the beneficiary is the insured’s spouse), life insurance if protected against creditors and life and health insurance policies are also protected
Hawaii 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