Passed by the United States Congress in 1977, the Fair Debt Collection Practices Act (FDCPA) makes it illegal for third party debt collectors to abuse and threaten consumers into paying delinquent debts.
The FDCPA prohibits the use of deception to trick consumers, such as impersonating law enforcement and mailing bogus arrest warrants.
Arizona has enacted several laws that fill in the legal blanks created by the FDCPA. A licensed Arizona lawyer understands the statute of limitations for debt collectors and the law as it applies to wage garnishment for debt collection.
Unlike the FDCPA, Arizona law does not allow consumers to sue debt collection agencies like Bureau of Medical Economics. If Bureau of Medical Economics violates one or more provisions of the FDCPA, an experienced consumer protection lawyer can help you file a lawsuit for the awarding of statutory and actual damages.
Arizona Law and the Statute of Limitations
In Arizona, the day the statute of limitations for consumer debt collection starts is the day when the original creditor charged off a debt. Original creditors typically wait 180 days before charging off consumer debts.
The statute of limitations for a written consumer credit contract is six years, while Arizona law gives debt collectors three years to seek a judgment against a consumer that has stopped paying off a debt enforced by an oral contract.
Fees and Interest Charges
Third party debt collectors purchase debts from original creditors for pennies on the dollar. Debt collection agencies pad the already hefty profit margins by tacking on fees and interest charges.
Arizona law permits third party debt collectors to add fees and interest charges to purchased debts, but only if the additional fees are clearly defined in a written contract.
![Collection Laws Governing Bureau of Medical Economics in AZ*]()
Debt Collection and Wage Garnishment in Arizona
Arizona law permits a third party debt collector to seek a judgment against you to garnish your wages. The judgment grants debt collectors the legal right to request employers take a percentage of wages out of paychecks. Arizona uses a formula followed by many other states.
A debt collector can garnish the lesser amount of 30 times the federal minimum wage or 25% of a consumer’s disposable income. For example, if you earn $800 per week and the federal minimum wage is $9, a debt collector can garnish the lesser amount of $200 a week from your paycheck.
Speak with a FDCPA Lawyer
Debt collection agencies such as Bureau of Medical Economics must follow every provision written into the FDCPA. If Bureau of Medical Economics fails to comply with one or more provisions of the FDCPA and/or violates Arizona statute of limitations and wage garnishment laws, you have the legal authority to hire a lawyer who can help you file a claim against the debt collection agency.
Additional Resources
*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Bureau of Medical Economics or any other third-party collection agency, you may not be entitled to any compensation.