Louisiana Fair Debt Collection Law differs considerably from the federal Fair Debt Collection Practices Act (FDCPA). In fact, Louisiana Revised Statutes Ann. Sections 9:3552 and 9:3562 discusses how to direct deal with debt collection agencies. The statutes says:
- A debt collection agency can't contact anyone outside of your household, except to determine your home or work address, unless you give it permission to do so
- If you have sent a cease and desist letter, a debt collection agency can send you one notice per month through the mail, for a total of four notices
You may sue debt collection agencies in Louisiana, however consumers may only sue for defamation and malicious prosecution. However, under the federal Fair Debt Collection Practices Act (FDCPA) you have the right to sue a debt collection agency in federal court and receive actual expenses to cover damages and attorney fees of up to $1,000.
Louisiana Statue of Limitations (SOL)
Louisiana has a three-year statue of limitation (SOL) on open accounts such as credit cards, which means you can only be contacted for up to three years regarding an outstanding credit card debt. For written contracts creditors can contact you for up to 10 years.
In terms of wage garnishment, Louisiana provides exemptions for a broad spectrum of garnishment including:
- Pensions and retirement benefits--Louisiana’s protection is very broad for pensions and retirement
- Public benefits/assistance-- protection is offer for workers’ compensation, unemployment benefits, aids to families with dependent children, crime victim’s compensation
- In addition to group and health insurance, Louisiana protects annuities or insurance such as accident, disability and life insurance proceeds
Louisiana 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