Sarah Edwards | August 01, 2023
Edited by Hannah Locklear
Summary: Residents of Arizona can report unlawful debt collectors to the Arizona Attorney General or directly to the Federal Trade Commission. The best way out of your debt is to repay or settle it. SoloSuit can help you validate your debt and request to settle it for a fraction of the original amount.
Are you being hounded by a relentless debt collector? Does the sound of your phone make you cringe? If you’re a resident of Arizona, you have laws that protect you from aggressive collection practices.
Understanding the debt collection laws in Arizona will equip you to deal with debt collectors, and SoloSuit can help you settle your debts and even respond to a debt collection lawsuit.
Chances are that your debt collector has purchased an old debt from one of your creditors — usually a bank or credit card company. Now, it might stop at nothing to collect on this debt, even if that means engaging in some shady business tactics.
Thankfully, Arizona residents are protected by the Fair Debt Collection Practices Act (FDCPA), which strictly regulates what debt collectors are allowed to do. For example, debt collectors are not permitted to engage in the following:
While collection agencies are often legitimate, there are also plenty of debt collection scams out there. Learning more about the Statute of Limitations and your rights as a consumer can help you avoid falling prey to scam artists and unscrupulous debt collectors.
Ariz. Rev. Stat. § 32-1055 states that debt collection agencies must apply for and obtain a license with the Arizona Department of Insurance in order to collect debt in Arizona. This section also explains that debt collectors are prohibited from threatening to sell a debt in order to get a debtor to pay them.
Finally, it also declares that Arizona debt collection agencies must notify the department within ten days of any change of name under which it conducts business. Debt collection agencies frequently change names to make their practices easier, so knowing about this law can help you in standing up for your rights against unruly debt collectors.
Debt collectors cannot file a lawsuit to collect a debt once the Statute of Limitations expires. The deadline varies depending on the type of debt you owe. In Arizona, the Statutes of Limitations are as follows:
|Credit Card||6 years|
|Auto Loan||6 years|
|Student Loan||6 years|
|Personal Loan||6 years|
|Ariz. Rev. Stat. § 12-548 and § 12-1551|
Many consumer debts fall under the broad category of “written” debts. This means that credit card debt, personal loans, home equity loans, and other lines of credit have a Statute of Limitations of six years.
If you believe that a debt collection agency has violated the FDCPA, you can report the violator to the Arizona Attorney General’s Office. Use the online form for consumer complaints or ask for help at the following numbers:
You can also report FDCPA violations to the Federal Trade Commission (FTC) through the FTC website or by calling 877-382-4357. Finally, you can report violations to the Consumer Financial Protection Bureau online or by calling 855-411-2372.
Now that you understand your rights, you’re better equipped to handle debt collectors who may be calling you regarding your debt. Here’s what to do — and what not to do — the next time your phone rings.
Debt collectors may pressure you to create a payment plan or make your first payment as a sign of good faith. Think hard about your next steps before you do that. You could unwittingly reset the Statute of Limitations on your debt.
For instance, if your debt is five years old and you make a payment, your debt collector now has six more years to reclaim the remaining balance.
You can settle your debt by going through a few additional steps — and you’ll likely be able to settle your debt for a reduced amount.
Your debt collector must identify themselves and provide you with contact details so you can send a Debt Validation Letter. This is a written request for details about the original debt, including the identity of the creditor, the amount owed, and other relevant information.
You also have the right to send a Cease and Desist Letter. Once your debt collector receives this letter, the law prohibits them from contacting you further.
But be cautious. Sending a Cease and Desist Letter may give you temporary peace of mind, but it could expose you to a lawsuit if you lose track of your debt.
The surest way to get debt collectors off your back is by paying what you owe. But if you go about this wisely, you can usually settle your debt for a steep discount.
In a debt settlement, you offer your creditor a portion of the total amount due, usually at least 60% of the debt’s value. In exchange for a lump-sum payment, the creditor agrees to drop its legal claims against you and release you from the remaining balance.
A creditor often considers negotiating a debt settlement if you promise to make a lump-sum payment and clear the remaining amount within a short period. Because of this, debt settlement usually works best if you have some cash saved or expect to receive some money soon
Settling your debt helps you avoid a judgment and wage garnishment. You’ll save some money and move on from this challenging experience.
If you decide to settle your obligation, you’ll want to ensure you get the terms of your agreement in writing and pay the creditor before your court date. If you’ve never tried debt settlement before, consider working with a professional organization that will guide you through the process.
To learn more about how to settle a debt in Ohio, check out this video:
SoloSettle, powered by SoloSuit, is a tech-based approach to debt settlement. Our software helps you send and receive settlement offers until you reach an agreement with the collector. Once an agreement is reached, we’ll help you manage the settlement documentation and transfer your payment to the creditor or debt collector, helping you keep your financial information private and secure.
Now, let’s look at an example of how debt settlement in Arizona works:
Example: Mark has been drowning in credit card debt, and eventually, LVNV Funding sued him for nearly $4,000. After responding to the lawsuit with the help of SoloSuit, Mark used SoloSettle to offer a settlement that worked with his current budget. In the end, he was able to settle his debt for only 65% of the original amount and is now on his way to rebuilding his credit.
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.
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.
Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.
"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather