The federal government passed the Fair Debt Collection Practices Act and the Fair Credit Reporting Act in 1978 to account for rising problems with improper debt collection practices. This problem has progressed since then with increasingly aggressive debt collectors, and many states have continued to add protection for debtors and regulations for all related debt laws.
Wyoming adds a small section in their law code to be enforced in addition to the federal regulations for debt collection practices. These additional regulations stipulated in Wyoming law for debt collection apply only to debt collecting agencies, rather than loaning parties directly attempting to collect an owed debt. Such agencies must be licensed through the state with a bond of $10,000. The maximum interest rate on loans in Wyoming is 7%, however interest rate on judgment penalties is 10%, unless the contracted rate involved was lower.
In regards to debt collection, the statute of limitations applied begins with the date of the first missed payment, instead of with the last completed payment. A statute of limitations is the amount of time one party has to bring charges to court against another. In addition, these laws apply to a contract’s place of creation, not the residence of either party. Wyoming maintains these limitations for different loan contracts:
The Fair Debt Collection Practices Act and the Fair Credit Reporting Act Wyoming provide the regulations for debt collection practices in Wyoming, with penalties of up to $1,000 per violation, in addition to fees for legal representation. Wyoming also uses the federal standards of 75% wage protection from garnishment, or 30 times the federal minimum wage. But unique to Wyoming, garnishments have a time restriction of 90 days.
Wyoming law code only provides laws against harassment by debt collecting organizations. The federal regulations of the Fair Debt Collection Practices Act and the Fair Credit Reporting Act provide protection from individual collectors. Both groups of laws allow penalties of no more than $1,000 per violation, along with possible legal fee compensation benefits.
Debt negotiation and debt settlement involves the creation of a new contract to replace an existing one. These can contain one or multiple lump sum payments, lowered payments, or even deferred payment plans. The laws that regulate these practices are those that govern all other aspects of loaning and debt collection, such as interest rate and wage garnishment limitations. Successful negotiations are often made directly with the loaning party, along with legal representation. However, there are many debt settlement companies available to take care of this process also. Debtors should act with caution to avoid any fraudulent business practices of a settlement company or the loaning party. There are many advantages to this process when completed successfully, such as:
Debt settlement can be very complicated because of the many possible contract clauses and fraudulent practices. A debt settlement lawyer specializes in recognizing any improper practices, evaluating financial circumstances, and creating plans accordingly to successfully take care of debt. Though individual debtors may achieve benefits from debt settlement on their own, the use of a legal specialist will likely maximize these benefits. In addition, once hired, debt collectors must communicate through a debtor’s legal representation. Any direct attempts of direct contact may be considered debt harassment, which these lawyers can also deal with.