Debt Collection Laws in Virginia

Edited by Hannah Locklear

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.

Sued for debt in Virginia? Use SoloSettle to settle your debt before going to court.

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.

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 your state

Here's a list of guides for other states.

All 50 states.

• Alabama
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Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

• Absolute Resolutions Investments LLC
• Accredited Collection Services
• Alliance One
• Amcol Clmbia
• American Recovery Service
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Autovest LLC
• Cach LLC
• Cavalry SPV I LLC
• Cerastes LLC
• Colinfobur
• Covington Credit
• Crown Asset Management
• CTC Debt Collector
• Cypress Financial Recoveries
• Delanor Kemper & Associates
• Eagle Loan of Ohio
• Educap
• Estate Information Services
• FIA Card Services
• Forster & Garbus
• Freshview Solutions
• Fulton Friedman & Gullace LLP
• Harvest Credit Management
• Howard Lee Schiff
• Hudson & Keyse LLC
• Integras Capital Recovery LLC
• Javitch Block
• Jefferson Capital Systems LLC
• LVNV Funding
• Mannbracken
• Mariner Finance
• Medicredit
• Michael J Adams PC
• Michael J Scott
• Midland Funding LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Mountain Land Collections
• MRS Associates
• National Collegiate Trust
• Nationstar Foreclosure
• Northstar Capital Acquisition
• NCEP LLC
• NRC Collection Agency
• OneMain Financial
• Palisades Collection LLC
• Pallida LLC
• Paragon Revenue Group
• Pinnacle Collections Agency
• PMAB LLC
• Portfolio Recovery Associates
• Provest Law
• PYOD LLC
• Reunion Student Loan Finance Corporation
• Revenue Group
• Regents and Associates
• RSIEH
• Salander Enterprises LLC
• Second Round Sub LLC
• Security Credit Services
• Sherman Financial Group
• Suttell and Hammer
• T-Mobile
• Transworld Systems
• Tulsa Teachers Credit Union
• UCB Collection
• Velo Law Office
• Velocity Investments
• Waypoint Resource Group
• Weinberg and Associates
• Wolpoff & Abramson

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

• Bank of America
• Capital One
• Chase
• Credit One Bank
• PayPal Synchrony Card
• SYNCB/PPEXTR
• Synchrony Bank
• Target National Bank
• Wells Fargo

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Learn More With These Additional Resources:

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How to Make a Debt Validation Letter - The Ultimate Guide

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