Although North Dakota does not have a state fair debt law, consumers who have been victimized by debt collectors should refer to federal Fair Debt Collection Practices Act (FDCPA). Important rules include:
- Collectors cannot use inappropriate or obscene language or make threats
- Calls must be made between 8am and 9pm unless you specify otherwise
- Calls made to you at work cannot be made if your employer disapproves
- Debt collectors cannot correspond with debtors via postcard or use an envelop that indicates its from a collections agency
- If you send a cease and desist letter via mail, the collector cannot contact you again except to tell you they are taking legal action against you
- During communication (whether in person or by phone) creditors must state his name and not misrepresent who he works for (i.e. cannot say he is a cop or an attorney)
- The debt collection agency cannot imply that you’ve committed a crime or threaten to sell your debt in an attempt to collect
- You cannot be contacted by a debt collector if you are being represented by an attorney
Consumers in North Dakota can bring legal action through the Fair Debt Collection Practices Act (FDCPA) against debt collectors who violate the law. A successful suit may result in damages of up to $1,000.
North Dakota Statue of Limitations (SOL)
North Dakota has a six-year statue of limitation (SOL) on open accounts such as credit cards, meaning that the creditor can contact you for up to six years. For written contracts creditors can also pursue you for up to six years. Consumers can consider North Dakota debt settlement during the time the account remains open.
Several areas of non-wage income are exempt from garnishment in North Dakota In addition to Social Security, these area are exempt from garnishment:
- Pensions: public employee pensions in North Dakota are covered plus so are a myriad of private retirement benefits (up to a certain dollar amount) and public pensions
- Public benefits/assistance-- North Dakota provides protection for veteran benefits along with including workers’ compensation, unemployment, aid to families with dependent children and crime victim compensation
- North Dakota insurance and annuities typically covered include disability, fraternal society benefits, life insurance payable to deceased’s heirs
North Dakota Credit Card Debt Relief Act of 2010
The Credit Card Debt Relief Act of 2010 has streamlined the methods for repaying debt and regulated how collectors work with debtors. The Act has impacted debt relief collections several ways:
- The number of fraudulent or weak performing credit card companies are gone
- Reduces the chances of falling victim to fraudulent debt settlement companies due to new Federal Trade Commission (FTC) reforms
- Increased, open communication from creditors--more information is provided to help you eliminate your loans
- Debt settlement companies cannot request upfront fees from clients