Collection Agencies in Tennessee and Laws

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List of collection agencies in Tennessee

• • RAB Inc. : Memphis
  • Automated Collection Services Inc (ACSI) : Nashville
  • Universal Collection Systems (UCS) : Memphis
  • Knoxville
  • Chattanooga
  • Clarksville
  • Murfreesboro

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Debt Collection Laws in Tennessee

1. Fair Debt Collection Practices Act (FDCPA): Like all states, Tennessee is subject to the federal Fair Debt Collection Practices Act. The FDCPA applies to third-party debt collectors and prohibits them from engaging in abusive, deceptive, or unfair practices when collecting a debt.
2. Tennessee Consumer Protection Act: Tennessee has its own laws governing debt collection practices, incorporated in the Tennessee Consumer Protection Act. This law is similar to the federal FDCPA but applies to both third-party debt collectors and original creditors. It prohibits practices such as harassment, misrepresentation, and unfair practices in the collection of a debt.
3. Statute of Limitations: As of 2021, the statute of limitations for written contracts in Tennessee is 6 years, and for oral contracts, it is also 6 years. Once this period has passed, debt collectors cannot sue to collect the debt. Note that acknowledging the debt or making a payment can restart the statute of limitations.
4. Wage Garnishment: In Tennessee, if a creditor has obtained a judgment against a debtor, they may be able to garnish wages. However, there are limits on how much can be garnished. 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 Tennessee law generally conforms to these limits.
5. 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, Tennessee law provides certain exemptions that may protect a portion of the debtor’s assets.
6. Communication with Debt Collectors: Under Tennessee 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.
7. Exemptions: Tennessee 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.
8. Licensing and Bonding: Debt collectors operating in Tennessee must be licensed and bonded. The bond is intended to provide a form of financial protection for consumers in case of a violation of debt collection laws by the debt collector.

Again, it is important to note that laws change, and the information I have provided may no longer be accurate. Consult a lawyer or legal aid organization to get the most current information and advice on dealing with debt collectors in Tennessee.

• Consent of just 1 party is needed to record the call.
• Commercial collection agencies have been delivering a very decent recovery rate for their clients.
• Most collection activity happens in these 5 cities – Columbia, Chattanooga, Knoxville, Memphis and Nashville.
• Debt collectors cannot call debtors frequently before 8:00 am and 9:00 pm.
• Creditors are not allowed to add fees or interest in TN unless it was specified in the original contract.