Debt Collection Laws in Wyoming: Know Your Rights

Dealing with debt collectors can be stressful-especially if you are not aware of your rights under Wyoming law. This article will take you through the basics of the debt collection laws in Wyoming, focusing on those rules that protect you from abusive practices. You will also get a briefing about the Federal Fair Debt Collection Practices Act that applies in all states, including Wyoming.

By understanding the laws, you’ll be better prepared to manage debt collectors and take the right steps if they violate your rights.

What Collection Agencies Cannot Do in Wyoming?

Wyoming adheres to federal law in dictating how a debt collector can treat consumers. The FDCPA is the primary law that prohibits debt collectors from engaging in unfair or abusive conduct. Here is what a debt collector cannot do:

1. Harass or abuse you: They can't threaten, scream, or use profane language. They also can't call repeatedly to annoy you.
2. Call at inconvenient times: They are not allowed to call before 8 am or after 9 pm unless you agree to it.
3. Deceit or Falsehood: The debt collectors should not impersonate police or state any false pretenses about the amount owed.
4. Inform others of your debt: They cannot inform anyone except your spouse or attorney of your debt. They can, however, contact others attempting to locate you, but they cannot indicate that you owe a debt.
5. Demand more than you owe: A debt collector can't try to collect more than the amount of your debt unless your contract or state law says it can include fees and interest.

If a debt collector has violated any of these, you can file a complaint with the Federal Trade Commission or the Wyoming Attorney General's Office.

Statute of Limitations in Wyoming

Debt does not last forever. Wyoming has a statute of limitation that limits how long a debt collector can sue to collect a debt. Once the time period expires, the debt is deemed to be "time-barred, which means the debt collector can no longer sue you for it. However, they can continue calling or writing letters asking for the debt to be paid.

Limitation on the statute for Wyoming depends on the nature of the debt:

• Written contract: loans or leases 10 years
• Oral contracts: 8 years
• Accounts opened-credit cards among others: 5 years
• Judgments (court orders to pay a debt): 10 years

The clock on the statute of limitations generally would start when you made your last payment on the debt. Note, however, that if you make a payment after the statute of limitations has expired, it may start the clock anew and provide debt collectors with more time to sue you.

Steps to Take When a Debt Collector Calls

If you are contacted by a collection agency in Wyoming, the following steps could be considered measures to protect yourself:

1. Ask for Debt Validation

This includes the request for the Debt Validation Letter by the collector if one is not sure whether he owes the debt or the amount is correct. In such cases, the FDCPA demands them to prove that one indeed owes the debt within 30 days of the first contact. If they fail to verify the debt, by law, they can't continue to collect the debt.

2. Dispute the Debt

You may dispute a debt if you feel that there is something wrong with the amount owed by writing a Debt Dispute Letter within 30 days of any validation notice. The collector should not continue collection activities immediately after you dispute a debt until the debt is verified. Make sure you keep copies of all correspondence sent regarding your dispute.

3. Sending a Cease and Desist Letter

You can send a Cease and Desist Letter if you no longer want the debt collectors to contact you. From that point forward, the only contact they can make with you is to inform you that they are no longer attempting to collect or to let you know that they intend to take legal action. Remember, it does not get rid of the debt; it can only stop the harassment.

4. Setup a Payment Plan

If you know you owe it and want to pay, you may want to try negotiating the amount with the collector. Sometimes, they will accept less than what you owe as one payment or will let you make a few smaller payments. Get any agreement in writing before you start to make payments.

What Happens if You’re Sued for Debt in Wyoming

If a collection agency sues you for a debt, don't ignore the lawsuit. If you ignore the legal notice, you might have a default judgment entered against you, meaning the court automatically rules in favor of the debt collector. Here's what you should do if sued:

1. Respond to the Complaint

Depending on your jurisdiction, you have 20 to 30 days from the date of notification. You can file an Answer with the court in which you admit, deny or defend the claims against you. If you believe that the statute of limitation has passed or that the debt is not yours, state this in your response.

2. Attend Court

If it goes to court, then attend the hearings. Bring with you documents that support your case, such as proof of payment or a copy of the statute of limitation for your type of debt. This will make it impossible for him to prove the debt is yours and the court will dismiss the case.

3. Consider Legal Assistance

Not knowing what to do about a lawsuit, the best thing one may do is seek an attorney. There are attorneys who specialize in consumer law and who will help self-defend a debt collection lawsuit.

Wyoming Exemptions: What Debt Collectors Can and Can't Take

Even in cases where the collection agency wins a lawsuit against you in Wyoming, the law has certain limits on how much they can really take from you. The law allows for certain exemptions that protect some of your assets from seizure to satisfy your debt. Here's what's protected under Wyoming law:

1. Homestead Exemption

Wyoming has an up-to-$20,000 homestead exemption. That means this much of the equity in your home is exempt; creditors can't make you sell your home to pay a debt unless your equity in it is more than $20,000. The home exemption does not apply if your debt is directly related to your home, like a mortgage.

2. Vehicle Exemption

You can exempt up to $2,400 of equity in one vehicle. Equity is how much the difference is between what you still owe on a car and its current value.

3. Personal Property Exemption

Up to $4,000 worth of personal property can be exempt from creditors. This includes furniture, clothing, appliances, and other personal items.

4. Wage Garnishment Limits

In Wyoming, creditors can garnish up to 25% of your disposable income amount left after taxes and deductions. However, if you make less than 30 times the federal minimum wage per week, your wages are totally exempt.

What Else You Need to Know About Debt Collection in Wyoming

Though long and exhaustive, debt collection can make quite a lot of difference when one knows his or her rights. Additional tips that come in handy while dealing with debt collectors:

1. Do not avoid debt collectors: Even if you cannot pay a debt, it's always better to stay in touch with them rather than avoid their calls or letters. This may result in a lawsuit against you.
2. Know Your Rights Under the FDCPA: FDCPA is a federal law regulated by the Consumer Financial Protection Bureau that protects consumers from unfair debt collection practices. If anyone violates the rules, you may file a complaint with the Consumer Financial Protection Bureau or the Wyoming Attorney General.
3. Organization: Keep a copy of every letter, e-mail, and note concerning calls from collection agencies. These could be helpful if you ever try to prove that a collector has violated the law.
4. Seek professional help: If the debt becomes uncontrollable, consult a credit counselor or a debt settlement company. A professional will be able to help you with budgeting, contacting creditors and looking for other debt relief options.

Conclusion

Debt collection laws set up in Wyoming are primarily directed toward protecting consumers from various abusive and unfair practices. Understanding your rights under the FDCPA and Wyoming law places you well to take charge of your situation and avoid falling prey to aggressive debt collectors.

This guide will walk you through each step in contact with the debt collector. Make sure any agreement is in writing and if in doubt as to your rights or how to proceed, take the time to go ahead and seek legal advice. With the right knowledge, debt can be handled better and unnecessary stress avoided.