Debt Collection Laws in Virginia

Dena Standley | November 10, 2023

Dena Standley
Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Virginia debt collection laws protect consumers by regulating actions that creditors and debt collectors can take to collect money owed. Federal law outlines additional protections against unruly debt collectors. If you’ve been sued for debt in Virginia, SoloSuit can help you stand up for your rights and settle your debt before going to court.

In the debt-collection world, creditors use intimidating tactics to exploit a consumer's desperate situation and lack of debt-related knowledge to get their money. If unchecked, debt collectors can instill fear and use their superior position to cause unending stress to consumers.

Fortunately, Virginia’s debt collection laws protect consumers from harassment and intimidation. It also limits when, how, and for how long a creditor can follow up on their debt. The law clearly outlines the penalties debt collectors will experience if caught mistreating consumers.

In this article, we'll explore Virginia debt collection laws and help you prepare to take action when a debt collector violates your rights.

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What laws protect consumers from debt collectors in Virginia?

Virginia has laws in place to protect consumers from unprofessional practices by debt collectors. These laws include:

Virginia Consumer Protection Act

The VCPA serves to protect consumers from fraudulent practices committed by suppliers of goods and services. Some prohibited activities include:

  • Suppliers are prohibited from misrepresenting goods and services as those of another.
  • Misrepresenting the affiliation or association with the supplier
  • Misrepresenting the geographic origin of goods
  • Misrepresenting the quantity, benefits, characteristics, or ingredients of a product
  • Advertising goods that are second-hand, defective, seconds, or irregular without clearly marking that the goods are not first-class
  • Making misleading or false statements concerning the reasons for, or amount of, price reductions

Virginia Consumer Finance Act

Consumer finance companies must be licensed by the state of Virginia, undergo a rigorous vetting process, and maintain compliance with the terms of the VCFA.

These laws cover various requirements, such as how a debt collector should communicate and when and how long they can follow up on a debt. Let's look at some specific laws.

Prohibition of deceptive acts

Va. Code Ann. § 18.2-213 prohibits debt collectors from using any type of simulated legal document in an effort to collect a debt. Sending simulated legal documents such as Writs, Warrants, Notice of Liens, or a Notice of Motion for Judgment is a Class IV misdemeanor. Simulated legal documents manipulate information to depict a consumer will encounter untruthful and severe consequences for not paying.

How to disclose debt information

When contacted by a debt collector, it is legally mandated that they provide sufficient debt information prior to any payment considerations. They are also required to respond to any requests for debt validation, such as a Debt Validation Letter, wherein you can request further details about the debt. The information debt collectors are required to share includes:

  • A breakdown of the debt amount
  • The original creditor's name
  • A statement saying you can dispute the debt if you find discrepancies
  • Another statement indicating they will provide more information about the debt if you require it

The law requires the creditor to respond to the Debt Validation Letter with a written notice within five days of initiating communication. Watch the following video to learn how to make a Debt validation Letter in the following video.

Right to seek remedies and damages

In Virginia, debtors can seek damages and other legal remedies when debt collectors violate their consumer rights (in any of the five categories listed above). You can take action against them by reporting to various consumer protection organizations, including the Federal Trade Commission, or you can file a lawsuit against them.

Wage garnishment

Virginia debt collection laws allow creditors to garnish your wages, but they can only take 25% of your income after the mandatory deductions. If the debt collector quotes a higher amount, you can file an objection or file for an exemption. The Virginia garnishment law favors consumers, and the courts modify the garnishment order when you present your facts well.

Virginia statute of limitations on unpaid debt

Virginal Code (VA Code § 8.3A-246) protects consumers from being sued for a debt their entire life. It only allows creditors to sue for credit card debt and debts acquired via a written contract for five years. Additionally, they have three years to sue for oral contracts and open accounts debt, while an auto debt collector has four years to file a lawsuit against you. After the time expires, they can only follow up on the debt using other means but not via the court.

The table below further outlines the statute of limitations on debts in Virginia:

Statute of Limitations on Debt in Virginia
Debt Type Deadline
Open Contract 3 years
Oral Contract 3 years
Credit Card 5 years
Medical 5 years
Auto Loan 5 years
Student Loan 5 years
Mortgage 5 years
Personal Loan 5 years
Judgment 10 years
Va. Code § 8.01-246 and § 8.01-251

How does the Federal Debt Collection Practices Act protect consumers?

The Federal Debt Collection Practices Act is a national debt collection law that controls debt collectors' actions in all states. Virginia borrows heavily from the FDCPA laws and regularly refers to it in some sections. Below, we’ll give you a brief breakdown of some of the rules and regulations that debt collectors must follow under the FDCPA.

  • Debt collectors cannot call you before 8 a.m. or after 9 p.m.
  • If you have an attorney representing you in a debt collection case, debt collectors must only communicate with the attorney.
  • Debt collectors cannot use profanity, threats, or any type of harassing language to coerce you to pay off a debt.
  • Debt collectors must disclose who they are and the company they work for each time they contact you.
  • Debt collectors cannot pretend to be associated with any government or legal enforcement agencies.
  • Debt collectors cannot lie about who they are, including their abilities to sue you if they cannot or do not play to do so.
  • Debt collectors cannot discuss your debt with anyone but you, your attorney, your creditor and their attorney, or a consumer reporting agency.

These are some of the most common FDCPA violation, but note that there are dozens of other ways debt collectors can violate the FDCPA in Montana. Plus, it’s important to note that FDCPA also supports state-specific laws, as outlined in § 816:

“This subchapter does not annul, alter, affect, or exempt any person subject to the provisions of this subchapter from complying with the laws of any State with respect to debt collection practices, except to the extent that those laws are inconsistent with any provision of this subchapter, and then only to the extent of the inconsistency. For purposes of this section, a State law is not inconsistent with this subchapter if the protection such law affords any consumer is greater than the protection provided by this subchapter.”

Steps to take after a debt collector violates your rights

As we have seen, debt collection laws allow you to take action against a creditor who violates your rights. The steps to take to ensure you receive fair and just treatment are as follows:

  1. Keep a record of the violation by writing when and how the debt collector contacted you, the language they used, and how they violated your rights.
  2. Next, contact the debt collector, inform them of the violation, and ask them to correct the mistake, or you will take action against them. If they agree, stop the action at this stage. If they ignore your request, proceed to step three.
  3. Submit a complaint to the Virginia Attorney General's office and consumer protection organizations such as the Federal Trade Commission, Consumer Finance Protection Bureau, and the Better Business Bureau.
  4. Dispute the debt if the creditor entered an inaccurate debt on your credit report and any attempts to ask them to correct it have failed to bear fruit.
  5. File a lawsuit against the debt collector if the above methods fail to yield desired results. However, ensure you have evidence to prove your case before a judge or jury.

SoloSuit can help you manage your debt at any stage of the collection process. We have various documents and a wealth of applicable information on our blog and YouTube page to help you stop debt collector’s calls, force a lawsuit out of court, respond to a lawsuit, and settle your debt using SoloSettle. To learn more about how to settle your debt, check out this video:

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Debt collector guides

Are you being contacted by a debt collector? We’re making guides on how to resolve debt with each one.

Arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Bankruptcy

Bankruptcy is a great way to legally resolve debt, but it's usually best to consider it as a last resort. Here are some bankruptcy guides to help you decide which debt resolution option is best for you.

Check your case status

Don’t have time to go to your local courthouse to check the status of your case? We’ve created state guides on how to check the status of your case throughout the US, complete with online search tools and court directories.

Credit

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt, along with other credit-related resources.

Debt collection FAQs

Find answers to some of our the most commonly-asked questions about debt collection below.

Debt collection documents and templates

If you're dealing with debt, these documents and templates will help you respond, protect your rights, negotiate, and resolve your debts.

Debt relief

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt settlement

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created state guides on debt settlement. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

Eviction

Facing an eviction? The following guides will help you navigate your situation with confidence.

Federal debt collection laws

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Legal aid

Helping people find access to justice is at the heart of Solo's misison. If you're dealing with a legal debt issue, the following guides will help you through it.

Medical debt

Having a health challenge is stressful, but dealing with medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Personal finance

Learn how to manage your finances and overcome crushing debt. Check out our personal finance guides below.

State debt collection laws

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote guides on each state’s statutes and more.

Stop collection calls

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Wage garnishment

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in your state, plus other wage garnishment resources.

The Debt Hotline

Hosted by Team Solo, The Debt Hotline breaks down debt and personal finance topics with help from attorneys, financial experts, and industry pros. We respond to real questions to help you navigate debt with knowledge and courage.

Other debt resources


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