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List of collection agencies in Rhode Island
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Debt Collection Laws in Rhode Island
- Fair Debt Collection Practices Act (FDCPA): Like all states, Rhode Island is subject to the federal Fair Debt Collection Practices Act. The FDCPA applies to third-party debt collectors and prohibits them from using deceptive, abusive, or unfair practices when collecting a debt.
- Rhode Island Debt Collection Practices Act: As of 2021, Rhode Island has its own set of laws called the Rhode Island Fair Debt Collection Practices Act, which is modeled after the federal FDCPA. This state law has provisions similar to the federal FDCPA but may offer additional protections.
- Statute of Limitations: As of 2021, the statute of limitations for written contracts in Rhode Island is 10 years, and for open accounts (such as credit cards) and oral contracts, it is 3 years. Once this period has passed, debt collectors cannot sue to collect the debt. Be cautious that acknowledging the debt or making a payment can restart the statute of limitations.
- Wage Garnishment: In Rhode Island, if a creditor obtains a judgment against a debtor, they may be able to garnish wages. Federal law limits garnishment to the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage, and Rhode Island generally follows these limits.
- Bank Account Levies and Property Liens: After obtaining a judgment, a creditor may seek to levy a debtor’s bank account or put a lien on property. However, Rhode Island law provides certain exemptions that may protect a portion of the debtor’s assets.
- Communication with Debt Collectors: Under Rhode Island law, debt collectors are subject to restrictions on their communication practices. For example, they cannot contact debtors at inconvenient times, harass them, or communicate with third parties about the debtor’s debt without permission.
- Exemptions: Rhode Island law provides various exemptions to protect a debtor’s property from being seized to pay a judgment. This includes exemptions for homesteads, personal property, wages, and certain types of income such as social security and retirement benefits.
- Licensing and Bonding: Debt collectors operating in Rhode Island must be licensed and bonded.
As laws are subject to change, it is important to consult a lawyer or legal aid organization to get the most current information and advice on dealing with debt collectors in Rhode Island.
Collection agencies licensed in RI can collect in the entire state, including Providence, Warwick, Cranston, Pawtucket and Woonsocket.
Depending on your requirement, we can connect you to a RI collection agency that specializes in medical debt recovery, small-business collections, and municipal or B2B collections. If required, a debt collector will get a judgment to attach assets like bank accounts, wages and real estate to satisfy the debt.