Debt Collection Laws for Kentucky

Sometimes when people are struggling with debt a debt collection agency gets involved. A debt collector is hired to try and recoup an unpaid amount of money to a third party and sometimes it can be a stressful experience dealing with the process of debt collection. Unlike most states, Kentucky doesn't have state laws dealing with debt collection. Kentucky debt collection practices are governed by the Fair Debt Collection Practices Act.

Debt Collector Contact

Debt collectors are only able to contact a debtor between 8 a.m. and 9 p.m. local time. Debt collectors can also contact your place of employment to verify you are employed but are not permitted to reveal the details as to the debt. If collectors are attempting to garnish wages, a judgment must be in place and the garnishment must be in writing.

Expired Debts

In the state of Kentucky, debts have an expiry date. This means if the debt has not been recovered within a specific time period, it is not collectible. The Kentucky Debt Statutes of Limitation is the guiding document for expired debts. For recovery of real property, court judgments, bonds, and written contracts the expiry date is 15 years. In the case of verbal contracts, checks and NSF fees, unpaid bills, receipts, and fraud the expiry date is five years. When there is a breach of sales contract the debt expires after four years. All other debts not specified in the Statute of Limitations on debt expire after 10 years. If the time period has lapsed, the debt is expired and cannot be collected on.

Ceasing Contact

In Kentucky, a debtor is able to stop debt collectors from contacting them. The debtor has to put in writing that the debt will not be paid or that the debt collector has to stop contacting the debtor at home and work. When a debt collector receives this notice, contact can be made with the debtor to indicate that the debt collection has ceased, or that the collection agency if taking legal action.

Harrasment Laws

Certain actions are illegal when collecting on a debt. Abusive and threatening language is prohibited, as is misrepresenting the debt collection firm, for example if the debt collector left a voice mail saying the debtor had won something, in an attempt to establish contact.

Debt collectors are forbidden from contacting third parties aside from the debtor, and the debtor's attorney, unless it is in regards to a judgment. This means that debt collectors cannot contact family members, friends, or an employer unless the debt collector is trying to serve a garnishment order.