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Collection Agencies in Florida| Debt Collection Laws

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List of collection agencies in Florida.

Debt Collection Laws in Florida

  1. Fair Debt Collection Practices Act (FDCPA): This federal law protects consumers from abusive, deceptive, or unfair debt collection practices. It sets limitations on when and how debt collectors can contact consumers and gives consumers the right to dispute debts and obtain information about the debts.
  2. Fair Credit Reporting Act (FCRA): Another federal law, the FCRA regulates the collection and use of consumer credit information. It provides consumers the right to access their credit reports and to dispute any inaccuracies.
  3. Florida Consumer Collection Practices Act (FCCPA): Florida has its own version of the FDCPA, known as the FCCPA. It provides additional protections to consumers and applies not only to debt collectors but also to original creditors. Under the FCCPA, debt collectors are prohibited from engaging in certain practices, such as communicating with debtors at inconvenient times or places, or using abusive or harassing tactics.
  4. Statute of Limitations in Florida: In Florida, there is a time limit for when creditors can sue consumers for unpaid debts. As of 2021, the statute of limitations for written contracts, including promissory notes and installment loans, was five years. For open-ended accounts such as credit cards, it was four years.

    Update: Florida’s HB 7089 reforms medical debt collection by introducing a 3-year statute of limitations and prohibiting aggressive collection actions until financial assistance eligibility is determined. It also mandates pricing transparency and personal property exemptions up to $10,000.

  5. Florida Garnishment Laws: If a creditor obtains a court judgment against a debtor in Florida, they can garnish the debtor’s wages or bank accounts. However, Florida has a head of family exemption that protects the wages of individuals who provide more than half of the support for a child or other dependent.
  6. Florida Homestead Exemption: Florida is known for having a generous homestead exemption that protects an individual’s primary residence from being forced to be sold by creditors to satisfy a judgment. The exemption generally applies regardless of the value of the home, but there are limitations on the size of the property.
  7. Licensing Requirements: Debt collectors operating in Florida must adhere to state licensing and registration requirements.
  8. Assignment of Wages: The assignment of wages is generally not allowed in Florida except in certain circumstances, such as for the payment of child support.

Since laws and regulations are subject to change, please verify the most current legal information or consult an attorney with expertise in debt collection laws in Florida for the most up-to-date details.

In 2019 a data breach at American Medical Collection Agency (AMCA) collection agency had a data breach that exposed the personal information of 1.25 million Florida residents, the agency eventually went out of business. Security of your data, and adherence to debt collection laws is critical when selecting a collection agency.

 

A complete list of federal laws to be followed by all collection agencies in USA are listed here: Debt collection laws 

  • A debt collection agency will typically recover money using collection letters and collection calls; however, if need be ( and with the creditor’s consent), they may even take legal action against the debtor in court and attempt to get a judgment for garnish wages or even place liens. Legal action is a contingency-based service, which means a collection agency gets only a percentage of what they recover. They can handle cases for small businesses, hospitals, and medical practices. Jurisdiction is typically decided near the residential address of the debtor.
  • Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA) protects consumer rights against harmful trade practices.


Florida Debt Statistics

  • Average Student Loan in Florida: $25.5K
  • The average mortgage debt in Florida was $188K in 2019.
  • The average credit card debt in Florida as of 2019 is $9,300
    Per capita auto loan debt is around 5K
  • Floridians had an average credit score of 668 in 2017

Florida Geographical Stats

  • Population in Florida: 19.06 million (year 2018)
  • Number of millionaires: 885K  ( year 2018)