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The Indiana Consumer Act – Debt Collection

Collection agencies must abide by laws that cover licensing of collection agencies by the Indiana Secretary of State.

It covers all persons and companies engaging in a business in soliciting claims for collection, or in the collection of claims owed asserted to be owed or due to another, including child support arrearages. It does not apply to attorneys, banks, financial institutions, real estate brokers, utility companies, or individual employees of collection agencies. If you have been contacted by a debt collector in Indiana, call us at (877) 846-1209.

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More Details About The Law You Should Know:

A companies wishing to operate as collection agencies in Indiana must apply for a collection agency license from the Secretary of State. The application must include a $5000 surety bond. Any applicants must be United States citizens, must not have a record as a defaulter in the payment of money collected or received for another, and must not be a collection agency whose license was suspended or revoked by the state and not subsequently reinstated. Licenses cannot be issued to judges, full-time law enforcement officers or full-time deputies.

Collection agencies in order state are only contacting Indiana residents on behalf of nonresident creditors using interstate communications, including telephone, mail service, or facsimile transmissions, are not required to be licensed.

It is unlawful for anyone to operate a collection agency in Indiana without having first obtained a license. It is also illegal for any collection agency to fail to account for and pay to its client any sums collected within 60 days of the date of the payment. It is also unlawful for any collection agency to fail to deposit any funds collected within one week, and to fail to keep a record of the money collected.

This law provides procedures for the Secretary of State to investigate any violations. Orders can be issued to offending persons or collection agencies to cease and desist from prohibited practices, to rescind certain transactions, to make restitution, or to take other action determined to be in the public interest. Civil penalties of up to $10,000 for each violation can also be issued. Provisions are also provided for appeals of those orders. A violation of these rules can also be prosecuted as a Class B misdemeanor.

Collection agencies licensed in Indiana can take assignment of an account for collection and can employ an attorney to file a lawsuit against the debtor. If such a lawsuit is not filed in the proper county, the plaintiff can be required to reimburse the attorney’s fees of the person sued, which were incurred to get the case transferred to the proper venue.

We encourage you to download a copy of the Fair Debt Collection Practices Act by filling out the form above. If debt collectors are calling you. Call us.

The laws described on this page are set forth in full in the Indiana Code, Title 25, Article 11, Chapter 1, Sections 1-16.

Have you been contacted by a debt collector?
Call us at (877) 846-1209 for a free case review!

In addition to rules covering the actions of creditors and collection agencies under your state’s laws, the Fair Debt Collection Practices Act (FDCPA) provides rules protecting consumers from illegal actions of debt collectors, and it applies equally in every state. This means that even if your state laws cannot help you, the FDCPA applies in many more situations.

In fact, certain sections of the laws listed in the available download may have been redacted for brevity.

If you want to find out more about how these laws pertain to your specific situation, please call us at (877) 846-1209 for a free case review with an experienced consumer law attorney. If you prefer, fill out our free case review form and we will contact you.