Dealing With Debt Collectors in Tennessee (2026)
Reviewed by DocDraft Legal Team · Tennessee · Last updated August 13, 2026
This page covers dealing with debt collectors in Tennessee, where the statute of limitations on most consumer debt is six years under Tenn. Code Ann. 28-3-109, which reaches contracts not otherwise covered, including written contracts, open accounts, and credit cards. Tennessee also regulates collection agencies directly: the Tennessee Collection Service Act (Tenn. Code Ann. 62-20-101 et seq.) requires most third-party collectors to be licensed by the Collection Service Board, and the Tennessee Consumer Protection Act (Tenn. Code Ann. 47-18) bars unfair and deceptive practices. Tennessee caps consumer-debt wage garnishment at 25 percent of disposable earnings under Tenn. Code Ann. 26-2-106, adds a per-child exemption, and protects a homestead under Tenn. Code Ann. 26-2-301. Complaints go to the Tennessee Division of Consumer Affairs.
What is the statute of limitations on debt in Tennessee?
For most consumer debt it is six years under Tenn. Code Ann. 28-3-109, the catch-all limit for contracts not otherwise covered. This generally reaches written contracts, open accounts, and credit card debt. Once six years run from your last payment or activity, a collector can no longer win a lawsuit to force payment.
Can my wages be garnished for consumer debt in Tennessee?
Yes, but only after a creditor gets a court judgment. Under Tenn. Code Ann. 26-2-106, a garnishment can take the lesser of 25 percent of your disposable earnings or the amount over 30 times the federal minimum wage. Tennessee adds a $2.50-per-week exemption for each dependent child under 16 who lives in the state.
How do I stop a debt collector from contacting me in Tennessee?
Send the collector a written cease-communication letter under 15 U.S.C. 1692c(c). Once it receives your letter, it must stop contacting you except to confirm it is stopping or to say it may pursue a specific remedy such as a lawsuit. Keep proof of mailing. Tennessee's Collection Service Act and the FDCPA both bar abusive contact.
What can a debt collector not do to me in Tennessee?
A collector cannot harass or abuse you or lie about the debt (15 U.S.C. 1692d, 1692e), and in Tennessee a third-party collector generally must be licensed by the Collection Service Board under Tenn. Code Ann. 62-20-101. Unfair or deceptive collection conduct can also violate the Tennessee Consumer Protection Act (Tenn. Code Ann. 47-18).
How Tennessee regulates debt collectors and what it protects
Tennessee regulates collection agencies more directly than many states. The Tennessee Collection Service Act (Tenn. Code Ann. 62-20-101 et seq.) requires most third-party collection services operating in Tennessee to be licensed by the Collection Service Board, an entity within the Department of Commerce and Insurance that investigates complaints and can deny, suspend, or revoke a license; a creditor collecting only its own accounts is generally exempt from licensure. Layered on top, the Tennessee Consumer Protection Act (Tenn. Code Ann. 47-18) prohibits unfair or deceptive acts and practices in trade or commerce, which can reach abusive collection conduct, and the federal FDCPA (15 U.S.C. 1692) and CFPB Regulation F still apply. On the collection side, Tennessee's core protections are its six-year statute of limitations and its exemptions: wage garnishment for consumer debt is capped at 25 percent of disposable earnings under Tenn. Code Ann. 26-2-106, plus a $2.50-per-week exemption for each dependent child under 16 residing in Tennessee, and Tenn. Code Ann. 26-2-301 protects up to $35,000 of homestead equity for an individual (up to $52,500 for qualifying joint owners), effective January 1, 2022. Consumers can complain to the Tennessee Division of Consumer Affairs, part of the Attorney General's office, at core.tn.gov or (615) 741-4737 / (800) 342-8385, and can verify or report a collector to the Collection Service Board at tn.gov/commerce.
Relevant Laws
Tenn. Code Ann. 28-3-109 - Contracts not otherwise covered; six-year limit
Sets a six-year statute of limitations for actions on contracts not otherwise expressly provided for, which in Tennessee generally covers written contracts, open accounts, and credit card debt. The period runs from when the cause of action accrues, typically the last payment or activity. Demand notes carry a separate ten-year period under the same section.
Tennessee Collection Service Act, Tenn. Code Ann. 62-20-101 et seq.
Tennessee's collection-agency law. It requires most third-party collection services operating in Tennessee to be licensed by the Collection Service Board, sets license and bond requirements, and lets the Board investigate complaints and deny, suspend, or revoke a license. A creditor collecting only its own accounts is generally exempt from licensure.
Tenn. Code Ann. 26-2-106 and 26-2-301 - Garnishment cap and homestead exemption
Tenn. Code Ann. 26-2-106 caps wage garnishment at the lesser of 25 percent of disposable earnings or the amount over 30 times the federal minimum wage, with a $2.50-per-week exemption for each dependent child under 16 residing in Tennessee. Tenn. Code Ann. 26-2-301 protects up to $35,000 of homestead equity for an individual ($52,500 for qualifying joint owners).
Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692
The federal law for third-party collectors, which applies in Tennessee alongside the state's Collection Service Act and Consumer Protection Act. It bars harassment (1692d) and false or misleading representations (1692e), and creates the debt validation right (1692g) and cease-communication right (1692c).
Regional Variances
Tennessee statute of limitations on debt, by debt type
Written contract - 6 years
Actions on a written contract fall under the six-year catch-all limit in Tenn. Code Ann. 28-3-109 for contracts not otherwise expressly provided for. The period runs from when the cause of action accrues, generally the date of breach or last payment.
Open account / credit card - 6 years
Unlike many states that use a shorter open-account period, Tennessee generally applies the same six-year limit in Tenn. Code Ann. 28-3-109 to open accounts and credit card debt, treating them as contracts not otherwise covered.: confirm there is no separate shorter open-account statute for a specific account type.
Oral contract - 6 years
An oral contract in Tennessee generally falls under the same six-year period in Tenn. Code Ann. 28-3-109 as other contracts not otherwise covered, rather than a shorter oral-contract statute used in some states.: verify no shorter period applies to a particular oral-agreement type.
Promissory note / demand note - 6 to 10 years
A demand note carries a ten-year period under Tenn. Code Ann. 28-3-109. Other written promissory notes generally fall under the six-year contract period, though a negotiable instrument may be governed by Tennessee's UCC (Tenn. Code Ann. Title 47, Chapter 3).: confirm the exact limit for a specific note.
Suggested Compliance Checklist
Confirm the Tennessee limitations period and your last activity date
Before you pay, settle, or promise anything days after startingDetermine that your debt falls under the six-year period in Tenn. Code Ann. 28-3-109, which generally covers written contracts, open accounts, and credit cards. Note the date of your last payment or written acknowledgment, because a new payment or promise can restart the clock on a time-barred debt.
Verify the collector's Tennessee license and read the validation notice
Within 5 days of first contact days after startingCheck whether the third-party collector is licensed by the Collection Service Board at tn.gov/commerce, as most collectors must be under Tenn. Code Ann. 62-20-101. Confirm the Regulation F validation notice (12 CFR 1006.34) identifying the creditor, amount, and dispute rights, and calendar the 30-day window to dispute under 15 U.S.C. 1692g.
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. This forces the collector to stop collecting until it mails you proof of the debt. Send it with proof of delivery, such as certified mail.
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 state it may pursue a specific remedy. Tennessee's Collection Service Act also bars harassing contact by licensed collectors. Keep proof of mailing.
File a complaint with the Tennessee Division of Consumer Affairs and the CFPB
Within 1 year of any FDCPA violation days after startingSubmit a complaint to the Tennessee Division of Consumer Affairs at core.tn.gov or (615) 741-4737 / (800) 342-8385, report an unlicensed or abusive collector to the Collection Service Board at tn.gov/commerce, and file with the CFPB at consumerfinance.gov/complaint. Because 15 U.S.C. 1692k generally requires suit within one year, consult an attorney promptly.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the Tennessee limitations period and your last activity date | Determine that your debt falls under the six-year period in Tenn. Code Ann. 28-3-109, which generally covers written contracts, open accounts, and credit cards. Note the date of your last payment or written acknowledgment, because a new payment or promise can restart the clock on a time-barred debt. | - | Before you pay, settle, or promise anything |
| Verify the collector's Tennessee license and read the validation notice | Check whether the third-party collector is licensed by the Collection Service Board at tn.gov/commerce, as most collectors must be under Tenn. Code Ann. 62-20-101. Confirm the Regulation F validation notice (12 CFR 1006.34) identifying the creditor, amount, and dispute rights, and calendar the 30-day window to dispute under 15 U.S.C. 1692g. | - | 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. This forces the collector to stop collecting until it mails you proof of the debt. Send it with proof of delivery, such as certified mail. | 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 state it may pursue a specific remedy. Tennessee's Collection Service Act also bars harassing contact by licensed collectors. Keep proof of mailing. | cease-and-desist-letter | As soon as you decide to stop contact |
| File a complaint with the Tennessee Division of Consumer Affairs and the CFPB | Submit a complaint to the Tennessee Division of Consumer Affairs at core.tn.gov or (615) 741-4737 / (800) 342-8385, report an unlicensed or abusive collector to the Collection Service Board at tn.gov/commerce, and file with the CFPB at consumerfinance.gov/complaint. Because 15 U.S.C. 1692k generally requires suit within one year, consult an attorney promptly. | - | Within 1 year of any FDCPA violation |
Frequently Asked Questions
In Tennessee, credit card debt is generally subject to the six-year statute of limitations under Tenn. Code Ann. 28-3-109, the catch-all period for contracts not otherwise covered, which courts have applied to open accounts. That means a collector generally has six years from your default or last activity to file suit. After six years, it cannot win a judgment, though it may still ask you to pay.
Yes, in most cases. Under the Tennessee Collection Service Act (Tenn. Code Ann. 62-20-101 et seq.), a third-party collection service operating in Tennessee generally must be licensed by the Collection Service Board within the Department of Commerce and Insurance. A creditor collecting only its own accounts is typically exempt. You can verify a collector's license or file a report with the Collection Service Board at tn.gov/commerce.
Under Tenn. Code Ann. 26-2-106, a consumer-debt garnishment can take the lesser of 25 percent of your disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Tennessee also exempts $2.50 per week for each dependent child under 16 who resides in the state. Garnishment requires a court judgment first.
Not easily. Tenn. Code Ann. 26-2-301 provides a homestead exemption that shields up to $35,000 of equity in your principal residence for an individual, and up to $52,500 for qualifying joint owners, under amounts effective January 1, 2022. A judgment can create a lien, but the exemption protects equity up to the statutory amount. An attorney can confirm how it applies to you.
Yes. Under the federal FDCPA (15 U.S.C. 1692k) you can sue a collector, generally within one year of the violation, and recover actual damages, statutory damages up to $1,000, and attorney's fees. Deceptive conduct may also support a claim under the Tennessee Consumer Protection Act (Tenn. Code Ann. 47-18), and you can complain to the Division of Consumer Affairs. An attorney can evaluate your options.
Other Tennessee guides
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