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Debt collection laws in Hawaii

Here are some relevant federal and state laws that were in effect as of 2021:

  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. Hawaii Unfair and Deceptive Practices Act: Hawaii has its own laws to protect consumers from unfair and deceptive debt collection practices, similar to the federal FDCPA. This law prohibits debt collectors from engaging in harassing, deceptive, or unfair practices, including misrepresenting the amount or legal status of a debt and threatening to take legal action that they do not intend to take.
  4. Statute of Limitations in Hawaii: In Hawaii, there is a time limit for when creditors can sue consumers for unpaid debts. As of 2021, the statute of limitations for written contracts was six years, and for open accounts (such as credit cards), it was also six years.
  5. Hawaii Garnishment Laws: If a creditor obtains a court judgment against a debtor in Hawaii, they can garnish the debtor’s wages or bank accounts. Hawaii law limits the amount that can be garnished to the lesser of 5% of the first $100 per month, 10% of the next $100 per month, and 20% of all sums in excess of $200 per month, or the amount by which a person’s disposable earnings for a week exceed 60 times the minimum wage.
  6. Exemption Laws in Hawaii: Hawaii has laws that protect certain types of property from being taken by creditors to satisfy a debt judgment. These include a homestead exemption, personal property exemptions, and exemptions for certain types of income and benefits.
  7. Licensing Requirements: Collection agencies in Hawaii are required to be licensed by the Department of Commerce and Consumer Affairs.
  8. Required Disclosures: Hawaii law requires that debt collectors provide consumers with a written notice containing information about the debt, including the amount of the debt and the name of the creditor, and the consumer’s right to dispute the debt.

Please ensure that you are referring to the most current legal information or consulting a legal expert in Hawaii for the latest details on debt collection laws in the state.

For medical collections, all debt collectors must follow HIPAA privacy law.

Debt collectors cannot use abusive and deceptive collection practices to collect the debt. They must honor the HI time zone and cannot contact debtors outside specified periods. They can serve all islands, including Kauai, Oahu, Molokai, Lanai, Maui, and the island of Hawaii.

If you buy Collection Letters service from a Collection Agency, you must pay an additional Sales Tax between 4.166% to 4.712% , applicable to all Hawaii businesses and residents.