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Arizona debt collection laws

1. Fair Debt Collection Practices Act (FDCPA): This is a federal law that protects consumers from abusive, deceptive, or unfair debt collection practices. It sets limits on when and how debt collectors can contact consumers and provides consumers with rights to dispute debts and obtain information about the debts.

2. Fair Credit Reporting Act (FCRA): This federal law regulates the collection and use of consumer credit information. It gives consumers the right to access their credit reports and correct any inaccuracies.

3. Arizona State Statute of Limitations: In Arizona, as of 2021, the statute of limitations for credit card debt and other open accounts was six years. For written contracts, it was also six years. These statutes set the maximum period of time after an event within which legal proceedings may be initiated.

4. Arizona Debt Collection Licensing and Regulations: As of 2021, debt collection agencies operating in Arizona are required to be licensed. Consumers can file complaints against debt collectors with the Arizona Department of Financial Institutions if they believe the debt collector has violated state or federal laws.

5. Arizona Garnishment Laws: In the state of Arizona, if a creditor obtains a judgment against a debtor, they may be able to garnish the debtor’s wages or bank account. However, there are limitations on the amount that can be garnished. As of 2021, creditors could generally garnish the lesser of 25% of a debtor’s non-exempt disposable earnings or the amount by which a debtor’s non-exempt disposable earnings for the week exceed thirty times the federal minimum hourly wage.

6. Arizona Exemptions: Arizona has laws that protect certain types of property and assets from being seized by creditors even if a judgment has been obtained. These exemptions include a homestead exemption, personal property exemption, and protections for retirement accounts.

7. Arizona Fair Debt Collection Practices Act: Some states have their versions of the federal FDCPA, but as of 2021, Arizona did not have a state-specific version of this act.

Since laws and regulations are subject to change, it’s important to verify the most current legal information by consulting a lawyer or legal advisor with expertise in debt collection laws in Arizona.

Important information about Arizona:

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

• The Arizona law covers any person or entity that is deemed a debt collector under the FDCPA.
• Arizona debt collection agency can collect all across the state including these cities Phoenix, Tucson, Mesa, Chandler, Scottsdale, Glendale, Gilbert and Tempe.
• You should hire a collection agency with extensive experience of collecting in the state and a complete understanding of Arizona collection laws. 
• All collection agencies in the state must be licensed and bonded. However, unlike California and New York, it is not easy to sue a collection agency if they violate collection laws.
• The average Arizona resident has a credit card debt of $7100.
• The average mortgage debt in Arizona is $202,000
• Median annual household income of $56,600
• Arizona’s population is about 7.2 million
• An average college graduate is carrying about $24,000 in debt
• Per capita auto loan debt: $4,890

Selecting a Collection Agency in Arizona.

• Debt collectors should be well trained to follow Federal and Arizona debt collection laws.
• Select a collection agency that can handle both Big and Small clients.
• Should be able to do collections in English and Spanish.
• Should offer both Flat Fee and Contingency Collection Services.
• Provide an online client portal to submit new accounts and to stop the service when needed.
• Should have collection experts for your industry.
• Report debts to Credit Bureaus if requested by the client.