Tennessee debt: six years for everything, and a licensing board for collectors
Tennessee keeps it simple on time: six years for any contract debt, written or not. Be careful with payments, though, because Tennessee has no rule requiring a revival to be in writing. Collection agencies need a license from a state board that applies the federal rules as its own.
The check is free. If a dispute letter will help, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
Tennessee at a glance
- Any contract debt
- 6 years (28-3-109)
- Credit cards, open accounts
- 6 years
- Restarting the clock
- A payment may, no writing needed
- Agency license
- Collection Service Board
- Original creditors
- Not treated as collectors
- Wage garnishment
- Federal limit, plus $2.50/week per child
General information about Tennessee law, with sources below. Not legal advice.
Six years for any contract debt
Six years for contracts not otherwise provided for (Tenn. Code Ann. 28-3-109(a)(3)), with no split between written and oral contracts; open accounts and credit cards also get six years.
Tennessee courts treat a part payment as an acknowledgment of the debt that keeps it alive for a new six-year period, and an unqualified acknowledgment can count as a new promise to pay. So a small payment on an old account can be riskier in Tennessee than in states that require a signed acknowledgment.
Who regulates collectors in Tennessee
No one may run a collection service business in Tennessee without a license from the Collection Service Board (Tennessee Collection Service Act). The Board's rules make a violation of the federal Regulation F a violation of Tennessee rules as well.
Tennessee does not treat creditors collecting their own debts as debt collectors, unless the collection is outsourced. The federal dispute right applies to agencies and debt buyers: a written dispute inside the validation period makes the collector stop until it mails verification.
Our guide to time-barred and zombie debt explains what collectors may and may not do once the 6-year limit in Tennessee has passed.
Limits vary a lot between states: by comparison, Wisconsin sets 6 years and Georgia sets 4 years for similar debts.
Our guide on how to dispute a debt with a collector applies in Tennessee, with a free sample letter.
Tennessee residents often hear from national agencies like Absolute Resolutions Investments and Afni; see our guides to each.
For the court side of a Tennessee debt, from the summons to a possible judgment, see how to defend a debt collection lawsuit.
Wage garnishment and your children
A garnishment can take no more than the lesser of 25% of disposable earnings or the amount above 30 times the federal minimum wage (Tenn. Code Ann. 26-2-106). Tennessee adds an extra $2.50 a week of protected pay for each dependent child under 16 who lives in the state; you have to tell your employer about each child you claim.
To see how Tennessee compares with other states, and the ways to stop or reduce a garnishment, read our guide to wage garnishment.
Questions people ask about debt in Tennessee
What is the statute of limitations on credit card debt in Tennessee?
Six years under Tenn. Code Ann. 28-3-109, the same as other contract debts.
Can a payment restart an old debt in Tennessee?
It may. Tennessee has no statute on revival, and under common law a payment can revive a debt depending on the facts, without anything in writing.
Do collection agencies need a license in Tennessee?
Yes, from the Tennessee Collection Service Board.
How much of my wages can be garnished in Tennessee?
The lesser of 25% of disposable earnings or the amount above 30 times the federal minimum wage, plus $2.50 a week protected for each dependent child under 16.
Do Tennessee collection rules cover my original lender?
Generally not. Tennessee does not treat creditors collecting their own debts as debt collectors unless they outsource it.