Tennessee Debt Relief Laws

Tennessee Code Annotated Sections 62-20-101 to 62-20-137 is a licensing statute that prohibits debt collectors from using deceptive or misleading practices (such as posing as an attorney or sending false documentation). The statute also forbids collectors from violating or breaking the federal Fair Debt Collection Practices Act. (FDCP). Some important highlights 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

Tennessee consumers who have been victimized by a debt collection agency cannot sue, however the best route for recourse is through the Fair Debt Collection Practices Act (FDCPA). If the collector has violated the law, the consumer can receive up to $1,000 in damages.

Tennessee Statue of Limitations (SOL)

Tennessee 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 Tennessee debt settlement during the time the account remains open.

Tennessee has provided for more areas of non-income wage garnishment exemption than other states. Here are some areas that are protected:

• Pensions: both public and private retirement benefits are protected in Tennessee
• Public benefits/assistance-- areas that are protected include workers’ compensation, unemployment compensation, aid to the blind and disabled, aid to families with dependent children and veteran’s benefits
• Insurance and annuity protection--fraternal society benefits, accident, health, disability and annuity benefits payable to dependents

Tennessee 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