New Jersey Debt Collection Laws | Debt Collector Map

Your federal rights

These federal rules apply in New Jersey and every other state. New Jersey'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.

New Jersey law and extra protections

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

Extra protections: Collection agencies must have a bond on file with the state before collecting in New Jersey (N.J.S.A. 45:18-1).
Medical debt: no credit reporting for care on or after July 22, 2024, interest capped at 3%, and a 120-day wait plus a payment plan offer before collection action (Louisa Carman Medical Debt Relief Act, N.J.S.A. 56:11-56 to -63).
Can you sue under it?: New Jersey has no general state debt collection act. You can sue a debt collector under the federal FDCPA. The medical debt act is enforced only by the Attorney General and gives no private right to sue (N.J.S.A. 56:11-62(d)).
Official text: Read the law

Old debts in New Jersey

Written contracts: 6 years
Open accounts and unwritten agreements: 6 years
Does a payment restart the clock?: A spoken promise does not restart the clock. A new promise or acknowledgment must be in writing and signed by you. The law keeps whatever effect a payment of principal or interest has (N.J.S.A. 2A:14-24).
Must collectors say a debt is too old?: No state rule found that makes collectors tell you a debt is too old to sue on. Federal rule: a debt collector may not sue you or threaten to sue you on a time-barred debt (12 CFR 1006.26(b)).
Law: N.J.S.A. 2A:14-1 (6 years for contracts and accounts; sales of goods follow the 4-year UCC rule in N.J.S.A. 12A:2-725); 2A:14-24
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 New Jersey'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 New Jersey

Wage limit: Stricter than federal: a wage execution cannot take more than 10% of your wages, unless your income is above 250% of the poverty level for your family size, when the court can order more. Federal limits still cap it.
Bank account: No separate bank amount. Up to $1,000 of personal property, plus clothing, is protected (N.J.S.A. 2A:17-19).
Law: N.J.S.A. 2A:17-56; 2A:17-19; 15 U.S.C. § 1673

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 New Jersey

Personal property up to $1,000 plus all clothing is protected (N.J.S.A. 2A:17-19).

Collector licensing in New Jersey

License required: No statewide license
Who licenses: No license, but a collection agency bond must be on file with the state, handled by the NJ Division of Revenue and Enterprise Services (N.J.S.A. 45:18-1).
Check a license: Official license lookup

Medical debt in New Jersey

Louisa Carman Medical Debt Relief Act, P.L.2024, c.48 (N.J.S.A. 56:11-56 to -63), signed July 22, 2024. Providers and collectors cannot report medical debt for care on or after that date; credit bureaus cannot report paid medical debt or medical debt under $500. Since July 22, 2025: no collection action until 120 days after the first bill and a reasonable payment plan offer; 30 days' notice before collection action; interest capped at 3% a year; no wage garnishment if your income is under 600% of the federal poverty level. Medical debt reported in violation is void. Note: on October 28, 2025 the federal Consumer Financial Protection Bureau issued an interpretive rule saying that the federal Fair Credit Reporting Act generally preempts state laws that ban medical debt from credit reports (90 Fed. Reg. 48710). The state law is still on the books, but credit bureaus may argue it cannot be enforced, and courts have the final say.

If you are sued in New Jersey

If you don't answer: If you do not answer by the deadline on your summons, the court can enter a default judgment against you.
Court self-help: New Jersey court self-help (official)

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

Where to complain in New Jersey

New Jersey: New Jersey Division of Consumer Affairs (Office of the Attorney General)
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 New Jersey

Good to know in New Jersey

Most wage garnishments are capped at 10% of wages (N.J.S.A. 2A:17-56).
Medical debt for care since July 22, 2024 cannot go on your credit report (N.J.S.A. 56:11-58).
Collectors only need a bond, not a license. You can ask the Division of Revenue in writing whether an agency has one.

Changes in 2024–2026

P.L.2024, c.48 (Louisa Carman Medical Debt Relief Act): credit reporting parts took effect July 22, 2024; collection limits, 3% interest cap and garnishment ban took effect July 22, 2025.

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 New Jersey

What is the statute of limitations on debt in New Jersey?

6 years for written contracts and 6 years for open accounts and unwritten agreements (N.J.S.A. 2A:14-1 (6 years for contracts and accounts; sales of goods follow the 4-year UCC rule in N.J.S.A. 12A:2-725); 2A:14-24).

Does paying on an old debt restart the clock in New Jersey?

A spoken promise does not restart the clock. A new promise or acknowledgment must be in writing and signed by you. The law keeps whatever effect a payment of principal or interest has (N.J.S.A. 2A:14-24).

Must a collector tell me a debt is too old to sue on in New Jersey?

No state rule found that makes collectors tell you a debt is too old to sue on. Federal rule: a debt collector may not sue you or threaten to sue you on a time-barred debt (12 CFR 1006.26(b)).

How much of my paycheck can be garnished in New Jersey?

Stricter than federal: a wage execution cannot take more than 10% of your wages, unless your income is above 250% of the poverty level for your family size, when the court can order more. Federal limits still cap it.

How much money in a bank account is protected in New Jersey?

No separate bank amount. Up to $1,000 of personal property, plus clothing, is protected (N.J.S.A. 2A:17-19).

Do debt collectors need a license in New Jersey?

No. No license, but a collection agency bond must be on file with the state, handled by the NJ Division of Revenue and Enterprise Services (N.J.S.A. 45:18-1).

Does New Jersey protect people with medical debt?

Louisa Carman Medical Debt Relief Act, P.L.2024, c.48 (N.J.S.A. 56:11-56 to -63), signed July 22, 2024. Providers and collectors cannot report medical debt for care on or after that date; credit bureaus cannot report paid medical debt or medical debt under $500. Since July 22, 2025: no collection action until 120 days after the first bill and a reasonable payment plan offer; 30 days' notice before collection action; interest capped at 3% a year; no wage garnishment if your income is under 600% of the federal poverty level. Medical debt reported in violation is void. Note: on October 28, 2025 the federal Consumer Financial Protection Bureau issued an interpretive rule saying that the federal Fair Credit Reporting Act generally preempts state laws that ban medical debt from credit reports (90 Fed. Reg. 48710). The state law is still on the books, but credit bureaus may argue it cannot be enforced, and courts have the final say.

Where can I complain about a debt collector in New Jersey?

New Jersey Division of Consumer Affairs (Office of the Attorney General): https://www.njoag.gov/contact/file-a-complaint/

Sources

Last checked: Oct 24, 2026.

Federal sources

Debt collectors in New Jersey: your rights