Comprehensive Guide To The Utah Debt Collection Laws

Having a low income is not always the cause of debt. In 2022, the median household income in Utah will be $74,197, which is significantly higher than the national average. Despite this, a survey found that Utah residents have an average of $2,225 in credit debt. Thousands of Utah residents have trouble keeping up with payments like medical bills, credit card bills, mortgages, etc.

It could be due to excessive spending, poor financial management, etc. However, there is something even worse than getting in debt - not paying it back.

If a borrower has missed multiple loan payments, the creditor may send the debt to collections, which means an attorney or a debt collection agency in Utah will now collect the debt.

If you are in this situation and do not know how to handle it legally, you must be familiar with Utah's debt collection laws. It will provide a comprehensive outline of the state-sanctioned boundaries debt collectors cannot cross when attempting to collect the debt, your legal grounds if they violate your rights, etc.

Utah debt collection laws - Everything you need to know!

What are the debtor’s rights in Utah?

When dealing with debt collectors, you must be aware of the safeguards in place for you.

Harassment is strictly prohibited

The Fair Debt Collection Practices Act (FDCPA) forbids debt collectors from harassing, oppressing, or abusing the debtor or anyone they contact regarding debt repayment. Some examples of harassment are:

• Repetitive phone calls made with the intent to annoy, abuse, or harass
• Usage of obscene or offensive language
• Threats of violence or damage
• Publishing lists of individuals who refuse to pay their debts (this does not include reporting information to a credit reporting agency)
• Calling without identifying themselves

According to the debt collection laws in Utah, debt collectors cannot contact you unless you permit them before 8 a.m. or after 9 p.m. If they get informed that you do not accept calls at your place of employment, they will not be able to contact you there either.

False statements are not permitted

The FDCPA prohibits debt collectors from engaging in fraudulent, deceptive, or misleading conduct. It includes misrepresentations about the debt, including:

• The amount owed
• That the person is an attorney when they are not
• False threats to have you arrested
• Threats to do things that are not legal

Keep a file of any correspondence a debt collector sends you and copies of any correspondence you send to them. Additionally, record the dates and times of conversations and a summary of the discussion. These records can be helpful if you dispute with a debt collector, meet with an attorney, or go to court.

There are strict general limits on contact

There are strict limitations about what debt collectors can say or ask about you. Generally, a debt collector may only contact third parties to find out:

• Where you live
• Your phone number
• Your place of employment

According to the Utah debt collection laws, debt collectors cannot contact people the debtor knows more than once and cannot state that they are attempting to collect a debt.

In general, a debt collector may only discuss your debt with

• You and Your spouse
• Your parents (if you are a minor)
• Your guardian, executor, or administrator

If the debt collector knows that an attorney represents you, they must contact the attorney instead of you. If your attorney fails to answer the debt collector within a reasonable time, or if your attorney agrees, the debt collector may contact you.

What is the debt collection process in Utah?

According to Utah debt collection laws, debt collectors need to follow the steps mentioned below to collect the debt:

The debt collector must notify the debtor

Before taking you to court, the debt collector must send you a notification. It will include the creditor's name, the amount owed, and instructions on how to dispute the debt. Typically, you will have 30 days to request verification or dispute a debt.

The debt collector will file a Complaint

After 30 days have passed, the debt collector may file a lawsuit. You will receive a copy of the Complaint and Summons.

The defendant's response

The deadline for the defendant to file a response to the Complaint is written on the court Summons.

Typically, you will have 21 days to respond in Utah; if served out of state, the deadline will extend to 30 days. If you fail to respond within the allotted time, the court may issue a default judgment in favor of the creditor.

Disclosure and discovery are required

According to the debt collection laws in Utah, disclosure and discovery are required if you and the creditor proceed to trial. It means you must provide some information proactively and some information upon request.

For instance, you must submit your payment history, bill of sale, and balance statement. Upon request, you will also need to provide sworn testimony.

The judgment

If the creditor wins in court, they can proceed with collecting the debt.

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Can a creditor petition the court in Utah to recover their debt?

In Utah, a creditor can petition the court for a judgment that allows them to garnish your wages or even seize your property to recover the debt.

Wage garnishment

This method allows the debt collector to garnish up to 25% of your disposable income. Disposable earnings are those wages remaining after your employer has deducted all required deductions.

Bank levy

A bank account levy occurs when a creditor instructs a bank to withdraw funds without the account holder's (debtor’s) consent to recover their debt.

Lien

A lien is a claim or legal right against property that is typically used as security for a debt. It is a security for an underlying obligation, such as loan repayment.

Writ of execution

A writ of execution is a court order that enforces a possession judgment and instructs law enforcement personnel to begin the transfer of property as a result of a legal assessment. Property may consist of assets, cash, or real estate.

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How to respond to a summons for debt collection in Utah

If your lender sues you, you will receive a letter stating that. It is known as Summons and Complaints. Typically, you have just 21 days to respond to a Complaint and can respond with an Answer document.

There are three steps in responding to a Complaint:

• Answer each allegation in the Complaint
• Assert affirmative defenses
• File the Answer with the court and serve the plaintiff with the Answer

Answer each issue of the Complaint

Responding to a Complaint may appear intimidating, but the process is relatively straightforward. You must read the Complaint carefully and decide how to respond to each numbered paragraph.

You will get three options for your response:

• Agree
• Disagree
• I Don’t Know

Choose one of these answers and enter it in the Answer box. If you select "disagree," you can elaborate on your disagreement.

Assert affirmative defenses

To "assert affirmative defenses" is to provide reasons why you shouldn't lose the lawsuit or don't owe the debt. These defenses will be in your Answer.

Here are some of the most common defenses:

• The account containing the debt is not yours
• The contract has already been canceled; therefore, you owe nothing to the creditor
• The debt has been paid or forgiven
• You were not informed of your rights as a co-signer despite being a co-signer

These are just some of the numerous affirmative defenses. According to the debt collection laws in Utah, not being able to pay the debt is not a legal defense to the debt.

File the Answer with the court and serve the plaintiff

Surprisingly, this is commonly the most challenging part of the procedure: submitting your Answer to the courts. The courts of Utah require unrepresented defendant debtors to file their Answers by mail or in person.

So, if an attorney does not represent you, here is what you must do:

• Print two copies of your Answer
• Mail one copy to the court
• Mail the other copy to the plaintiff's attorney

The address for both should be in the Summons and Complaint you received in the mail.

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What is the Statute of Limitations in Utah?

In Utah, a creditor or debt collection agency will get a finite time to take legal action to try and recover a debt. This limited time is known as the statute of limitations.

If the statute of limitations has expired in Utah, creditors and debt collection agencies cannot file a lawsuit against you for the outstanding debt.

If a debt collector contacts you about any debt exceeding its statute of limitations, don't make payments or agree to a payment plan; that can resume the clock on your debt. Instead, ask whether the statute of limitations has expired. You can also contact an attorney or a non-profit credit counseling agency to discuss the next steps in this situation.

The statute of limitations will vary depending on the type of debt and your state of residence. In certain instances, the statute of limitations for filing a lawsuit gets determined by the terms of a contractual agreement. Many credit card agreements, for example, contain a "choice of law" clause that specifies which state law will apply in the event of a dispute.

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How long can a debt be collected in Utah?

State tax debt has the shortest statute of limitations in Utah, at just 3 years; most other forms of debt, such as credit card and medical debt, have a 6-year statute of limitations.

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What to do if you get sued on debt beyond the Statute of Limitations in Utah?

If you get sued for a debt that has passed the statute of limitations, you must understand that it is your responsibility to raise this issue. You must ensure that the statute of limitations is presented as a defense in your Answer to a debt collector's lawsuit.

It violates the Fair Debt Collection Practices Act for a debt collector to file a lawsuit to collect a debt that has expired. You may be able to collect actual or statutory damages and attorney fees if it gets proved that the debt collector filed a lawsuit to collect a debt that had expired.

Contact the Utah State Attorney General's Office, the Consumer Financial Protection Bureau, or the Federal Trade Commission if a debt collector violates your rights.

Can a debt be sent to collections without notice in Utah?

Yes, your debt can be sent to collections without notice. Before forwarding your debt to a debt collector, the creditor will attempt to recover the debt from you.

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Utah debt relief programs

In Utah, credit unions, banks, and nonprofit and for-profit credit counseling organizations can help consumers find debt relief. In Utah, you can eliminate debt through debt management, settlement, consolidation, and bankruptcy.

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Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified attorney for advice on your specific situation.