Montana · Debt collection rights · Updated Oct 2026

Debt collectors in Montana: your rights

What debt collectors can and can't do in Montana, how long they have to sue, how much of your pay and bank account is protected, collector licensing, where to complain and what to do if you are sued, in plain English from official sources.

6 yearsto sue on a written contract

25% (federal limit)wage garnishment limit

No statewide licensecollector license required

No general actstate debt collection law

Date on the summonsto answer a debt lawsuit

Your federal rights

These federal rules apply in Montana and every other state. Montana's own law, below, can add more.

Who the federal law covers. The Fair Debt Collection Practices Act (FDCPA) covers debt collectors who collect for someone else and companies that buy debts, not usually the original creditor collecting its own debt (15 U.S.C. 1692a(6)). Some state laws also cover original creditors.
A validation notice. A collector must give you a validation notice, in its first message or within 5 days after it, with the amount, the creditor and how to dispute (15 U.S.C. 1692g(a); 12 CFR 1006.34).
Your right to dispute. If you dispute the debt in writing within the validation period (30 days after you get the notice), the collector must stop collecting until it mails you verification (15 U.S.C. 1692g(b); 12 CFR 1006.38).
When collectors can contact you. No calls before 8 a.m. or after 9 p.m. your time, or at work if your employer doesn't allow it (15 U.S.C. 1692c(a)). More than 7 calls in 7 days about one debt is presumed to break the law (12 CFR 1006.14(b)(2)).
Telling a collector to stop. If you tell a collector in writing to stop contacting you, it must stop, except to tell you it is ending collection or will take a specific step such as a lawsuit (15 U.S.C. 1692c(c)).
What collectors can't do. No threats, obscene language, false statements (for example pretending to be a lawyer or the government, or threatening arrest) and no unfair practices such as collecting fees your contract doesn't allow (15 U.S.C. 1692d, 1692e, 1692f). A collector generally can't discuss your debt with your family, neighbors or employer (15 U.S.C. 1692c(b)).

Read how to dispute a debt or stop collector calls.

Montana law and extra protections

Montana has no general debt collection act; the federal rules above still apply.

Can you sue under it?: Use the federal FDCPA (actual damages, up to $1,000 extra, and attorney's fees) for third-party collectors. Montana's general consumer protection law (Unfair Trade Practices and Consumer Protection Act, Mont. Code Ann. Title 30, ch. 14, part 1) may also apply.

Old debts in Montana

Written contracts: 6 years
Open accounts and unwritten agreements: 5 years
Does a payment restart the clock?: Yes. A part payment (of principal or interest), or an acknowledgment of the debt in a writing you sign, starts the time limit over (Mont. Code Ann. § 27-2-409).
Law: Mont. Code Ann. § 27-2-202(1) (6 years, written instrument, for lawsuits filed on or after Oct. 1, 2025; it was 8 years before), (2) (5 years, unwritten contract or account); § 27-2-409; SB 143 (2025), Ch. 174, L. 2025
Official text: Read the law

The time limit is the statute of limitations. Once it runs out, the debt is “time-barred”: a collector must not sue or threaten to sue you, but the debt still exists. Read more about time-barred debt.

Is my debt too old? Check Montana's time limit

Every state limits how long a creditor or collector has to sue you over a debt. This is the statute of limitations. Choose your state, the type of debt and the date of your last payment to see the limit and an estimated end date. Nothing you type here is sent anywhere.

Wage garnishment and bank accounts in Montana

Wage limit: federal limit applies: no more than 25% of disposable earnings, or the amount above 30 times the federal minimum wage per week, whichever is less.
Law: Mont. Code Ann. § 25-13-614(2)

Federal benefits such as Social Security, SSI and VA benefits that were directly deposited are protected in your bank account up to two months' worth (31 CFR 212.6). A creditor usually needs a court judgment before it can garnish your wages or bank account.

Property you can keep in Montana

Your home is protected up to the homestead limit: $350,000 in 2021, rising 4% each calendar year, with the exact figure set by Department of Revenue rule (Mont. Code Ann. § 70-32-104). One motor vehicle is protected up to $4,000, and household goods up to $7,000 in total (§ 25-13-609).

Collector licensing in Montana

License required: No statewide license
Who licenses: No Montana license for collection agencies was found in the Montana Code.

If you are sued in Montana

Time to answer: The number of days printed on your summons. In district court it is 21 days after you are served with the summons and complaint (Mont. R. Civ. P. 12(a)(1)(A), MCA Title 25, ch. 20). Justice court deadlines can differ, so read your summons.
If you don't answer: If you do not file an answer in time, the collector can ask for a default judgment and then garnish wages or bank accounts.
Court self-help: Montana court self-help (official)

Don't ignore court papers. Read what to do if a debt collector sues you.

Where to complain in Montana

Montana: Montana Department of Justice, Office of Consumer Protection
Federal: the Consumer Financial Protection Bureau takes complaints about debt collectors at consumerfinance.gov/complaint · (855) 411-2372.
You can also report a collector to the Federal Trade Commission at ReportFraud.ftc.gov.

Free help in Montana

Good to know in Montana

Montana cut its time limit for written contracts from 8 to 6 years for lawsuits filed on or after Oct. 1, 2025 (SB 143, 2025; Mont. Code Ann. § 27-2-202(1)).
In Montana a small payment or a signed written acknowledgment can restart the time limit to sue (Mont. Code Ann. § 27-2-409).
Montana's homestead limit grows 4% each year from $350,000 in 2021 (Mont. Code Ann. § 70-32-104).

Changes in 2024–2026

SB 143 (2025), Chapter 174, Laws of 2025, shortened the time limit for lawsuits on a written contract or other written instrument from 8 years to 6 years. It applies to lawsuits filed on or after October 1, 2025 (Mont. Code Ann. § 27-2-202(1)). The 5-year limit for unwritten contracts and accounts did not change.

Free letters to send a collector

Dispute a debt and ask for proof (validation letter)

Within 30 days of the collector's validation notice.

Tell a collector to stop or limit contact

Stop all contact, writing only, or no calls at work.

Questions about debt collection in Montana

What is the statute of limitations on debt in Montana?

6 years for written contracts and 5 years for open accounts and unwritten agreements (Mont. Code Ann. § 27-2-202(1) (6 years, written instrument, for lawsuits filed on or after Oct. 1, 2025; it was 8 years before), (2) (5 years, unwritten contract or account); § 27-2-409; SB 143 (2025), Ch. 174, L. 2025).

Does paying on an old debt restart the clock in Montana?

Yes. A part payment (of principal or interest), or an acknowledgment of the debt in a writing you sign, starts the time limit over (Mont. Code Ann. § 27-2-409).

How much of my paycheck can be garnished in Montana?

federal limit applies: no more than 25% of disposable earnings, or the amount above 30 times the federal minimum wage per week, whichever is less.

Do debt collectors need a license in Montana?

No. No Montana license for collection agencies was found in the Montana Code.

How long do I have to answer a debt lawsuit in Montana?

The number of days printed on your summons. In district court it is 21 days after you are served with the summons and complaint (Mont. R. Civ. P. 12(a)(1)(A), MCA Title 25, ch. 20). Justice court deadlines can differ, so read your summons.

Where can I complain about a debt collector in Montana?

Montana Department of Justice, Office of Consumer Protection: https://dojmt.gov/office-of-consumer-protection/

Sources

Last checked: Oct 24, 2026.

Federal sources