The federal Fair Debt Collection Practices Act. (FDCP) and Wisconsin Statutes Annotated Sections 218.04 and 427.101 to 427.105 deals with how debt collectors should interact with consumers and are extremely similar. Some important rules include :
- Collectors cannot trick you into paying for collect calls or telegrams
- Debt collectors cannot threaten and misrepresent who they are or what their company does
- Collectors cannot send correspondence in postcard form and can only display the agency’s name and address on the envelope
- You cannot be charged additional fees from a collector for your debt
- Collectors cannot publish or post your name
- If you are being represented by an attorney, the collector or agency must work through that attorney and not you
- You can only be contacted by a collector between 8am and 9pm (unless you’ve agreed to another time)
- You have up to 30 days to dispute a debt--once the written dispute is set in motion the collector cannot contact you until it provides you with documentation
Wisconsin consumers are allowed to sue debt collection agencies and be awarded actual damages. Additionally, Wisconsin consumers can pursue legal action through the federal Fair Debt Collection Practices Act (FDCPA).
Wisconsin Statue of Limitations (SOL)
Wisconsin 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 Wisconsin debt settlement during the time the account remains open.
Wisconsin provides protection for several areas of non-income wage garnishment. Exemptions include:
- Pensions: Wisconsin has broad protection for retirement including public employee pensions (municipal, fire fighter and police), military and private pensions are protected
- Public benefits/assistance: workers’ compensation, unemployment compensation and aid to families with dependent children
- Insurance and annuity protection-- federal disability benefits, fraternal society benefits and life insurance if the beneficiary is a dependent of the insured
Wisconsin 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