A Guide to Understand and Navigate Debt Collection Laws in Virginia

It's natural to be concerned about your legal options and the amount of time debt collectors have to pursue payment after falling behind on bills like credit card debt, cards, or utilities.

Know your consumer rights and Virginia debt collection laws if you live in Virginia and are being harassed by creditors over an alleged unpaid debt via phone calls and/or letters. You should remember that the debt collection laws set by the federal law, Fair Debt Collection Practices Act (FDCPA), protect consumers from unlawful debt collection practices.

Understanding Your Rights as a Debtor under the Virginia Consumer Protection Act and Fair Debt Collection Practices Act

Debt collection agencies are subject to oversight under the federal FDCPA. The FDCPA protects consumers from unfair and dishonest debt collection practices, which are in effect in all 50 states. Please remember that the FDCPA's safeguards are available to you even if you live in Virginia. The Virginia Consumer Protection Act, like the FDPCA, protects its residents from unfair debt collection practices.

Customers with outstanding debt to service providers (such as vendors, credit card companies, or utility providers) are safeguarded by the FDCPA. Collection agencies cannot use illegal practices to harass or mislead people in order to get their money. For example, the FDCPA prohibits debt collectors from doing the following:

• Talking to outside parties about a debt (subject to a few exceptions, like your attorney or a credit reporting agency) to get location information for you
• Debt collectors should not contact you at your workplace if they know of any policies prohibiting such contact.
• Making false or misleading statements and engaging in actions intending to berate, intimidate, or abuse you.

Additionally, the FDCPA regulates the times of day and the contact methods that a debt collector can use with you. Virginia law abides by the rules set forth by the FDCPA.

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Debt collection laws in Virginia prohibit Debt collectors from using forged court documents

Anyone attempting to collect a debt in the Commonwealth of Virginia is prohibited by state law from using any false or misleading legal documents or threats of legal action to do so.

To be more precise, in violation of Virginia law, it is a Class 4 misdemeanor punishable by a maximum fine of $250 to deliver, mail, send, or otherwise cause to be used any paper or writing simulating or aimed to imitate any warrant, writ, execution lien notice, or notice of motion for judgment to collect what they owe. (Va. Code Ann. § 18.2-213)

Since this is a criminal offense, the debtor can only report the collector for breaking it and cannot sue them for doing so.

How to Respond When You Receive a Debt Collection Notice in Virginia

Being served with a debt lawsuit in Virginia can be a frightening and overwhelming experience. You may be worried about your financial situation and do not want to get weighed down in expensive litigation, court appearances, giving testimony in front of a judge, etc.

In Virginia, a summons for debt collection is a legal document called a "Warrant in Debt." Below, you'll find information on how to respond to such a document.

While there is no hard and fast rule regarding when you have to respond to a debt lawsuit in Virginia, Va. Code § 16.1-79 makes it abundantly clear that you have to show up to court if you want to defend yourself against a debt lawsuit:

"A civil action in a general district court may be brought by warrant directed to the sheriff or to any other person authorized to serve process in such county or city, requiring the person against whom the claim is asserted to appear before the court on a certain day, not exceeding sixty days from the date of service thereof, to answer the complaint of the plaintiff set out in the warrant. After the warrant has been issued and delivered for service, it shall not be altered, nor any blank filled, except by order of the court."

In other words, the plaintiff, the creditor, or the debt collector suing you must set a court date within 60 days of serving you with the warrant in debt. To avoid a default judgment, the defendant, you, must show up on the scheduled date.

If the plaintiff obtains a default judgment, a judgment creditor can use it to get their money back through wage garnishment, personal property seizure, or through other collection efforts.

As stated previously, Virginia does not require an official "answer" to be filed prior to the court date. However, you must file a Grounds of Defense document with the court if you intend to contest the debt.

You must be present in court on the date specified in the warrant in debt if you want to contest the Virginia debt lawsuit and avoid a default judgment. Fill out a Grounds of Defense and file it with the court before your court date, or you can wait to submit it in person.

A grounds of defense document allows you to explain why you shouldn't be held responsible for the debt. It's also an official request for the plaintiff to provide a more thorough justification for why you owe the money in the form of a "Bill of Particulars."

How to review and respond to warrant in debt in Virginia

How to review a warrant in debt

When you've been served with a "warrant in debt," you might not be familiar with the name of the debt collection company or debt collector. Numerous debts are sold, packaged, and even resold to additional other debtors, collection companies, and debt consolidation agencies.

Therefore, it is crucial to check the warrant carefully to ensure the data's accuracy. Any unnamed third-party debt collector could have accidentally submitted a warrant containing incorrect details, such as an incorrect amount owed.
The following details about the claim should be included in a Virginia Warrant In Debt, which you should remember as you conduct your review.

The names of all parties involved

Where was the warrant issued and what court must you appear in, and what is its address

• The time and date of your court appearance to contest the disputed debt. The proceedings are typically scheduled within sixty days of warrant service.
• Original debt plus interest, plus any costs and attorney's fees the plaintiff is seeking to recover.
• The origin of the debt, such as a signed or written contract, a mortgage, bank account, credit reports, or other financial records, payments on debts, or an unpaid balance on an account.

How to respond to a warrant in debt

If you're being sued for debt in Virginia, you have defenses available. You can try to settle the lawsuit, ignore it, or fight it. Here are some "responses" you might want to give to a debt collection lawsuit in Virginia:

Challenge the location of the proceedings

You may request in writing that the case be transferred to a different court if you believe the plaintiff (the debt collector or collection agency suing you) should have issued the warrant in debt in another county or city. According to Virginia Code § 8.01-264, if you want a court to consider your objection to the venue, you must file your motion on or before your court date.

Appear in court to challenge the debt

If you disagree with the amount that is owed, you can appear in court on the scheduled date and time. At the hearing, you can argue why you shouldn't have to pay the amount in question. You may also demand a trial and a Bill of Particulars from the plaintiff.

Pay off your debt before you go to court

You and your creditor can try to negotiate a form of debt relief or debt settlement after you've been served with a warrant in debt. Given that the plaintiff will be able to collect the money they owe by garnishing your wages if a judgment is entered against you, this could be a good idea.

To make matters worse, the plaintiff can ask for money to cover the costs of filing the suit, hiring an attorney, and paying any other expenses incurred due to the lawsuit. For this reason, it might be preferable to try mediating the dispute or engaging the creditor in some other kind of out-of-court negotiation process.

If a debt collector, creditor, or lender has bought the delinquent debt for a small sum, they may be willing to negotiate a settlement payment that is less than the total amount owed.

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What is the Virginia Statute of Limitations on Collecting Debts that a debt collector has to follow?

Virginia Code § 8.01-246(2) states the statute of limitations for debt is:

"Subject to the provisions of § 8.01-243 regarding injuries to person and property and of § 8.01-245 regarding the application of limitations to fiduciaries, and their bonds, actions founded upon a contract, other than actions on a judgment or decree, shall be brought within the following number of years next after the cause of action shall have accrued:

In actions on any contract that is not otherwise specified and that is in writing and signed by the party to be charged thereby, or by his agent, within five years whether such writing be under seal or not."

Moreover, the code also states:

"In actions upon (i) any contract that is not otherwise specified and that is in writing and not signed by the party to be charged, or by his agent, or (ii) any unwritten contract, express or implied, within three years."

This means that:

• The statute of limitations on debt, including all written debts and credit card debt, is five years.
• As per the statute of limitations, creditors and debt collectors have five years from the default date to file a lawsuit against you.
• The statute of limitations on open accounts, all oral contracts, and implied contracts are for three years.

Other limitations on other forms of debt are:

• The statute of limitations on auto loans is four years.
• Medical debt, like written debts, has a limitation of five years.
• There is a seven-year limitation on state tax debt.
• A judgment creditor has 10 - 20 years to take action after the last payment before the debt becomes uncollectible.

Verify the statute of limitations on debt to make sure it is collectible

If you have questions about when a payment must be made, you should look into the applicable statute.

A debt collector can try to get money back from old debts even after the statute of limitations has passed, but they can't get a court to rule in their favor.

Creditors making a last-ditch effort to get paid for a debt may ask for a "good faith" payment. Be careful not to let this fool you. If you pay even a small amount, the clock on the statute of limitations will be restarted. Debt collectors will have even more time to pursue payment.

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