Oklahoma Debt Collection Laws

Debtors and creditors are unavoidable, and often times so are the problems associated with their relationship. A debtor is any individual or business, which owes money to another party, which is the creditor. The Fair Debt Collection Practices Act and the Fair Credit Reporting Act of the federal government were created to maintain order within the processes of these relationships, including collection, settlements, lawsuits, and harassment.

Debt Collection in Oklahoma

Unlike many other states, there are few state specific regulations in Oklahoma. The Fair Debt Collection Practices Act is the core source for debt related laws. This act is designed to help protect debtors from inappropriate collection practices, ensure proper debt transactions, and regulate debt collection services. Any violations to these laws are subject to a penalty of up to $1,000. Wage protection will protect at least 75% of wages. The maximum interest rate a debt collector can charge is 6%.

Oklahoma Statute of Limitations

As with most laws, charges can only be brought against an individual or business within a certain period of time after the violation. For debts, the statute of limitations begins on the date of the first missed payment, not the last made payment. They apply to where the debt occurred, not ones residency. The limits in Oklahoma are:

  • 3 years: Oral Agreements
  • 3 years: Open Accounts (credit cards)
  • 5 years: Written Contracts
  • 5 years: Promissory Notes

Collections Practices and Rules for Oklahoma

In Oklahoma, an interest rate is considered annual and to be paid at 6% by law, unless otherwise stipulated. However, the percentage of wage protection can be raised by court decision if the debtor is proven to be in an economic hardship. In addition, reimbursement to the winning party of a debt related lawsuit may not exceed $10,000.

Legal

  • Changes in a contracted interest rate, if the contract has been breached by either party
  • Post-Court Judgment wage garnishment
  • Lawsuits filed in the location of the original contract negotiation

Illegal

  • Threats of violence towards the debtor
  • Forcing the debtor to pay fees outside of the actual debt and any interest
  • Consecutive calls to the debtor at intervals of less than 20 seconds.

Laws for Debt Harassment in Oklahoma

Debt harassment is governed by the federal regulations of the Fair Debt Collection Practices Act, and can receive up to a $1,000 per violation penalty when proven in court. In addition, violations to these laws are considered misdemeanors, liable to one year in county jail. A mailed letter to the collector can legally halt harassment.

Oklahoma Debt Negotiation and Settlement Rules

Debt settlement is a unique process in which the debtor and creditor, and often a debt settlement lawyer, work together to develop a repayment plan that includes a lump sum amount. This can be a combination of lump sum and continued payments, or even payment deferrals. However, this process must be handled with great care. Laws regulating this process are those of associated debt laws, without any specifications unique to Oklahoma. Many debt settlement company claim incredible assistance, but can end up costing the debtor much more than their initial debt. Often negotiations directly with the collector, such as a credit card company, are much more beneficial. However, when the process is completed successfully, these settlements are useful to:

  • Reduce the stress of pending debts.
  • Organize one's financial outlook.
  • Consolidate the number of outstanding debts.

Help from an Oklahoma Debt Collection Attorney

A debt settlement lawyer is beneficial in multiple ways. Debt collectors must contact the lawyer, not the debtor, alleviating the stress of debt post mail, email, or telephone calls. If contact continues with the debtor, becomes harassment, or was previously harassment, a debt lawyer is skilled in effectively creating a case to prove the harassment. For settlements, debts are commonly sold or resold at decreasing values. These lawyers can derive a suitable repayment value according to these transfers. They are vital to achieve the greatest possible benefit from any debt negotiations because of their skills in assessing financial situations.

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