Dealing With Debt Collectors in Arizona (2026)
Reviewed by DocDraft Legal Team · Arizona · Last updated August 13, 2026
Arizona sets its own statute of limitations on debt: six years for a written contract or credit-card balance under A.R.S. 12-548, and three years for an oral debt or open account under A.R.S. 12-543. On top of the federal Fair Debt Collection Practices Act, Arizona licenses collection agencies through the Department of Insurance and Financial Institutions under A.R.S. 32-1001, and the Arizona Consumer Fraud Act (A.R.S. 44-1521) lets the Attorney General pursue deceptive collection conduct. Since Proposition 209 took effect in December 2022, wage garnishment for most consumer debt is capped at 10 percent of disposable earnings and the homestead and bank-account exemptions rose sharply. This page explains the Arizona limitations periods by debt type, what a collector cannot reach, licensing rules, and how to complain.
What is the statute of limitations on debt in Arizona?
It depends on the debt type. A written contract or credit-card balance has a six-year limit under A.R.S. 12-548. An oral debt or open account has a three-year limit under A.R.S. 12-543. The clock generally runs from default or the last payment. After it expires, a collector can still ask but cannot win a lawsuit if you raise the deadline.
Can debt collectors garnish my wages in Arizona for a credit card debt?
Yes, but limits are tight. Since Proposition 209 took effect in December 2022, a creditor with a judgment can generally garnish only 10 percent of your disposable earnings for consumer debt, and a court can lower that further on a showing of hardship. Garnishment requires a court judgment first, not just a collection call.
How do I stop a debt collector from contacting me in Arizona?
Send a written cease-communication letter. Under the federal FDCPA (15 U.S.C. 1692c(c)), once the collector receives it, it must stop contacting you except to confirm it is stopping or to state it may pursue a specific remedy such as a lawsuit. Send it by certified mail and keep proof of delivery. This stops contact but does not erase the debt.
What can a debt collector not legally do in Arizona?
Under the FDCPA and the Arizona Consumer Fraud Act (A.R.S. 44-1521), a collector cannot threaten arrest, use profane or harassing language, misrepresent the amount or legal status of a debt, or falsely threaten to seize exempt wages or property. Unlicensed collection agencies also violate A.R.S. 32-1001, which the state can enforce.
How Arizona regulates debt collectors and what they can take
Arizona does not have a single stand-alone fair-debt statute mirroring the FDCPA, but it layers several protections on top of the federal law. Collection agencies must be licensed under A.R.S. 32-1001 and following sections, administered by the Arizona Department of Insurance and Financial Institutions (DIFI) through the NMLS system, and licensees must post a surety bond. Deceptive or unfair collection conduct can also be pursued under the Arizona Consumer Fraud Act (A.R.S. 44-1521), which the Arizona Attorney General enforces and which supports private consumer claims. Arizona's biggest shift came from Proposition 209, the Predatory Debt Collection Protection Act, effective December 5, 2022: it cut the cap on garnishing disposable earnings for most consumer debt from 25 percent to 10 percent (a court may reduce it further for hardship), raised the homestead exemption under A.R.S. 33-1101 to $400,000 with annual inflation adjustments, and increased the protected balance in a bank account from $300 to $5,000. Together these rules sharply limit what a judgment creditor can actually collect from an Arizona wage earner.
Relevant Laws
Arizona Statute of Limitations on Written Contracts and Credit Cards, A.R.S. 12-548
Sets a six-year limitation to sue on a debt evidenced by a written contract executed in Arizona or by a credit card as defined in A.R.S. 13-2101. This is the controlling limitations period for most credit-card and written-loan debt in Arizona.
Arizona Statute of Limitations on Oral Debt and Open Accounts, A.R.S. 12-543
Sets a three-year limitation for an oral debt, a stated or open account, and claims for relief on the ground of fraud or mistake. This shorter period is distinct from the six-year rule for written contracts and credit cards.
Arizona Homestead Exemption, A.R.S. 33-1101
Protects up to $400,000 of equity in a person's dwelling from attachment, execution, and forced sale, with annual inflation adjustments after Proposition 209. This exemption limits what a judgment creditor can reach against an Arizona homeowner.
Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692
The federal law governing third-party debt collectors. It bars harassment (1692d), false or misleading representations (1692e), and unfair practices (1692f), creates the debt validation right (1692g), and allows suit within one year (1692k). It applies alongside Arizona law.
Regional Variances
Arizona statute of limitations by debt type
Written contract
Six years under A.R.S. 12-548 for a debt evidenced by or founded on a contract in writing executed in Arizona. The period generally runs from the date the cause of action accrues, such as default.
Credit card
Six years under A.R.S. 12-548, which expressly covers a debt evidenced by a credit card as defined in A.R.S. 13-2101. Arizona treats credit-card debt under the six-year written-contract period, not the shorter open-account period.
Oral contract / open account
Three years under A.R.S. 12-543 for an oral debt or a stated or open account, and for relief on the ground of fraud or mistake. This is shorter than the credit-card and written-contract period.
Promissory note
Generally six years for a note payable at a definite time, measured from the due date or an accelerated due date, under A.R.S. 47-3118 of Arizona's Uniform Commercial Code. Different rules apply to demand notes and dishonored drafts.
Suggested Compliance Checklist
Identify the debt type and confirm the Arizona limitations period
Within 5 days of first contact days after startingDetermine whether the debt is a written contract or credit card (six years, A.R.S. 12-548) or an oral debt or open account (three years, A.R.S. 12-543). Note the date of default or last payment so you can tell whether the debt may be time-barred before you respond.
Send a written debt validation letter
Within 30 days of receiving the validation notice days after startingIf you do not recognize the debt or the amount looks wrong, mail a written dispute and request for verification within the 30-day window under 15 U.S.C. 1692g. This forces the collector to stop collecting until it mails you proof of the debt.
Send a cease-and-desist letter if you want contact to stop
As soon as you decide to stop contact days after startingUnder 15 U.S.C. 1692c(c), a written cease-communication letter requires the collector to stop contacting you once received, except to confirm it is stopping or to name a specific remedy. Send it by certified mail and keep proof of delivery.
Verify the collector's Arizona license and note your exemptions
Within 10 days of first contact days after startingConfirm the agency is licensed with the Arizona Department of Insurance and Financial Institutions (difi.az.gov) under A.R.S. 32-1001. Record the exemptions that protect you, including the 10 percent wage-garnishment cap, the $400,000 homestead under A.R.S. 33-1101, and the $5,000 bank-account protection.
File a complaint with the Arizona Attorney General or the CFPB
Within 1 year of any FDCPA violation days after startingSubmit a consumer complaint at azag.gov/consumer and, for federal violations, at consumerfinance.gov/complaint. Because 15 U.S.C. 1692k generally requires suit within one year, consult an attorney promptly about statutory damages up to $1,000 plus fees and any Consumer Fraud Act claim.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Identify the debt type and confirm the Arizona limitations period | Determine whether the debt is a written contract or credit card (six years, A.R.S. 12-548) or an oral debt or open account (three years, A.R.S. 12-543). Note the date of default or last payment so you can tell whether the debt may be time-barred before you respond. | - | Within 5 days of first contact |
| Send a written debt validation letter | If you do not recognize the debt or the amount looks wrong, mail a written dispute and request for verification within the 30-day window under 15 U.S.C. 1692g. This forces the collector to stop collecting until it mails you proof of the debt. | debt-validation-letter | Within 30 days of receiving the validation notice |
| Send a cease-and-desist letter if you want contact to stop | Under 15 U.S.C. 1692c(c), a written cease-communication letter requires the collector to stop contacting you once received, except to confirm it is stopping or to name a specific remedy. Send it by certified mail and keep proof of delivery. | cease-and-desist-letter | As soon as you decide to stop contact |
| Verify the collector's Arizona license and note your exemptions | Confirm the agency is licensed with the Arizona Department of Insurance and Financial Institutions (difi.az.gov) under A.R.S. 32-1001. Record the exemptions that protect you, including the 10 percent wage-garnishment cap, the $400,000 homestead under A.R.S. 33-1101, and the $5,000 bank-account protection. | - | Within 10 days of first contact |
| File a complaint with the Arizona Attorney General or the CFPB | Submit a consumer complaint at azag.gov/consumer and, for federal violations, at consumerfinance.gov/complaint. Because 15 U.S.C. 1692k generally requires suit within one year, consult an attorney promptly about statutory damages up to $1,000 plus fees and any Consumer Fraud Act claim. | - | Within 1 year of any FDCPA violation |
Frequently Asked Questions
Six years. A.R.S. 12-548 sets a six-year limit for debt evidenced by a written contract executed in Arizona or by a credit card as defined in A.R.S. 13-2101. The period generally runs from default or the last payment. After six years, a collector can still ask you to pay but cannot win a lawsuit if you raise the statute of limitations as a defense.
Yes. A.R.S. 12-543 sets a three-year limit for an oral debt, a stated or open account, and claims based on fraud or mistake. That is shorter than the six-year period for written contracts and credit cards under A.R.S. 12-548. Because classification affects the deadline, confirm which category a debt falls into before you pay or promise anything.
Yes. Under A.R.S. 32-1001 and following sections, a collection agency that solicits or collects claims owed to a third party must be licensed by the Arizona Department of Insurance and Financial Institutions (DIFI) and post a surety bond. You can verify a license through DIFI's license search. Collecting without a required license violates Arizona law and can support a complaint.
For most consumer debt, a judgment creditor can generally garnish up to 10 percent of your disposable earnings after Proposition 209 took effect in December 2022, and a court may reduce that further on a showing of extreme economic hardship. Garnishment requires a court judgment first. Different rules can apply to child support, taxes, and student loans.
Yes. Under the federal FDCPA (15 U.S.C. 1692k) you can sue a third-party collector that violates the act, generally within one year, and recover actual damages, statutory damages up to $1,000, and attorney's fees. Deceptive conduct may also support a claim under the Arizona Consumer Fraud Act (A.R.S. 44-1521). An attorney can evaluate your options.
Other Arizona guides
Ready to Draft Your Document?
Get AI-powered legal documents with attorney review included. Plans start at $39.99/mo.