Indiana Debt Relief Laws

Indiana does not have a state debt collections law so consumers should refer to the federal Fair Deb Collection Practices Act (FDCPA) . The laws include:

• Debt collectors cannot charge you fees or collect an amount greater than what you owe
• Collectors cannot try to collect on an invalid debt
• Creditors can never threaten or misrepresent him or herself when contacting a debtor
• Collectors may only contact debtors between 8am and 9pm unless you indicate otherwise
• Collectors must send all correspondence in an unmarked envelope--no postcards or stamps outside the envelope indicating it is from a collections agency
• The collector cannot misrepresent documents by making correspondence appear to be legal documents when its not
• If you are being represented by an attorney, the debt collector must communicate with you through your lawyer
• You can dispute the debt in writing within 30 days of receiving the first notice--the collector cannot contact you again until your notification mails

In Indiana, consumers have the right to sue a debt collection agency if it violates the law in federal court and receive up to $1,000 in damages.

Indiana Statue of Limitations (SOL)

Indiana 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 also have up to six years.

In terms of wage garnishment, federal law applies, however Indiana has provided for additional exemptions such as:

• Social Security is protected under federal law
• Pensions and retirement benefits--although state employee benefits are protected, Indiana provides for limited retirement benefit protection for other public servants such as police or sheriffs
• Public benefits/assistance-- workers’ compensation, unemployment and crime victim compensation is protected. Left off the list is aid to families with dependent children or state assistance to the blind, elderly or disabled
• Some insurance and disability benefits are protected including mutual life or accident proceeds

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