Kentucky Debt Relief Laws

With no state debt collection law, victims of debt collection harassment in Kentucky should refer to the federal Fair Debt Collection Practices Act (FDCPA) in order to resolve conflict or unjust situations. Some highlights from this law include:

• If the debtor tells the creditor he is being represented by an attorney the creditor can only communicate with the attorney
• You can only be contacted between the hours of 8am and 9pm (unless you specify otherwise)
• The creditor cannot contact you at work unless your employer permits the call
• The creditor cannot threaten to take your property unless you’ve leveraged it as collateral
• A collection agency or creditor cannot force or deceive you into signing a confession of judgment
• No debt collector or creditor can represent him or herself as a government official
• Additional fees or charges cannot be compiled onto the original debt by the creditor
• Creditors cannot contact you via postcard and can only print its name and address on the exterior of any envelope/correspondence

Victims of debt harassment in Kentucky can sue for violation of the FDCPA and collect up to $1,000 (whichever is higher), in addition to attorney fees.

Kentucky Statue of Limitations (SOL)

Kentucky has a five-year statue of limitation (SOL) on open accounts such as credit cards, which means you can only be contacted for up to five years regarding an outstanding credit card debt. For written contracts creditors can contact you for up to 15 years.

In terms of wage garnishment, Kentucky provides exemptions for a broad spectrum of garnishment including:

• Social Security is protected under federal law
• Pensions and retirement benefits--Kentucky provides exemption for state worker pensions, county, municipal pensions
• Public benefits/assistance-- workers’ compensation, unemployment benefits, aids to families with dependent children, crime victim’s compensation
• Kentucky offers protection for several insurance and annuities including group life, health and disability, policies by cooperative insurance companies and fraternal societies

Kentucky 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