New Mexico Debt Collection Laws | Debt Collector Map

Your federal rights

These federal rules apply in New Mexico and every other state. New Mexico'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 Mexico law and extra protections

State law: Collection Agency Regulatory Act (licensing) and Attorney General rule on time-barred debt (12.2.12 NMAC, under the Unfair Practices Act)
Law: NMSA 1978, ch. 61, art. 18A; 12.2.12 NMAC
Covers original creditors: Yes
Extra protections: Every debt collector, including the original lender, must check in good faith whether a debt is too old to sue on. (12.2.12.8 NMAC)
Before collecting a time-barred debt or asking you to acknowledge it, a collector must tell you the debt may be too old to sue on, that you can't be forced to pay it through a lawsuit, and that a payment or signed promise can restart the time limit. If the collector contacts you in Spanish or another language, the notice must be in that language too. (12.2.12.9 NMAC)
Patients with household income at or below 200% of the federal poverty level cannot be pursued through collection actions for medical debt. (Patients' Debt Collection Protection Act, Laws 2021, SB 71)
Official text: Read the law

Old debts in New Mexico

Written contracts: 6 years
Open accounts and unwritten agreements: 4 years
Does a payment restart the clock?: Yes. A payment, or a signed admission or new promise to pay, can restart the time limit (NMSA 1978, § 37-1-16, as described in 12.2.12.9 NMAC).
Must collectors say a debt is too old?: Yes. Before collecting or seeking a payment or acknowledgment on a debt it knows or should know is time-barred, any debt collector (including the original lender) must give a plain-language notice that begins: 'We are required by New Mexico Attorney General rule to notify you of the following information. This information is not legal advice.' In letters it must be on the front page; it must be in the same language as the demand. (12.2.12.9 NMAC)
Law: NMSA 1978, § 37-1-3 (written contracts, 6 years); § 37-1-4 (unwritten contracts and accounts, 4 years); § 37-1-16; 12.2.12.7(H) NMAC
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 Mexico'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 Mexico

Wage limit: Stricter than federal. You keep the greater of 75% of your disposable earnings or 40 times the highest minimum wage that applies where you earned the wages (federal, state or local) for each week. For child support, 50% is protected.
Bank account: Up to $2,400 total in bank and investment accounts is protected (plus money from exempt sources such as benefits). It is part of a $15,000 'any property' exemption. (NMSA 1978, § 42-10-1(A)(14), as amended by Laws 2023, SB 216)
Law: NMSA 1978, § 35-12-7; § 42-10-1 (as amended by Laws 2023, SB 216); § 42-10-14

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 Mexico

Home: $150,000 (NMSA § 42-10-9). Motor vehicles up to $10,000; household goods up to $75,000; a $15,000 wildcard for any personal property (NMSA § 42-10-1). These are the 2023 amounts; the law requires cost-of-living adjustments every two years from July 1, 2025 (§ 42-10-14), but the Metropolitan Court exemption form revised 12-31-2025 still lists these same amounts.

Collector licensing in New Mexico

License required: Yes
Who licenses: New Mexico Regulation and Licensing Department, Financial Institutions Division (FID). FID says its licenses cover all third-party debt collection; its page links to NMLS to verify a licensee.

Medical debt in New Mexico

Patients' Debt Collection Protection Act (2021): medical debt of 'indigent patients' (household income at or below 200% of the federal poverty level) cannot be pursued through collection actions, and collection must stop once a patient is found indigent; bills must include plain-language itemization, and medical debt collectors must have that billing information before contacting you (Laws 2021, SB 71; NMSA ch. 57).

If you are sued in New Mexico

Time to answer: Magistrate or Metropolitan Court: file an answer within 20 days after the summons is served on you (form 4-204). District Court: file a written response within 30 days after you are served (form 4-206).
If you don't answer: If you do not respond in writing, the court may enter judgment against you as requested in the lawsuit.
Court self-help: New Mexico court self-help (official)

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

Where to complain in New Mexico

New Mexico: New Mexico RLD Financial Institutions Division (for licensed collection agencies); the New Mexico Department of Justice also takes consumer complaints
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 Mexico

Good to know in New Mexico

New Mexico's wage protection uses the highest minimum wage where you work, including city or county minimum wages (NMSA § 35-12-7, 2023).
New Mexico's time-barred debt disclosure rule applies to original creditors too, not only collection agencies (12.2.12.7(D) NMAC).

Changes in 2024–2026

The most recent big change was in 2023 (SB 216, effective July 1, 2023): higher exemptions, $2,400 bank protection, new wage formula, inflation adjustments starting July 1, 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 Mexico

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

6 years for written contracts and 4 years for open accounts and unwritten agreements (NMSA 1978, § 37-1-3 (written contracts, 6 years); § 37-1-4 (unwritten contracts and accounts, 4 years); § 37-1-16; 12.2.12.7(H) NMAC).

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

Yes. A payment, or a signed admission or new promise to pay, can restart the time limit (NMSA 1978, § 37-1-16, as described in 12.2.12.9 NMAC).

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

Yes. Before collecting or seeking a payment or acknowledgment on a debt it knows or should know is time-barred, any debt collector (including the original lender) must give a plain-language notice that begins: 'We are required by New Mexico Attorney General rule to notify you of the following information. This information is not legal advice.' In letters it must be on the front page; it must be in the same language as the demand. (12.2.12.9 NMAC)

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

Stricter than federal. You keep the greater of 75% of your disposable earnings or 40 times the highest minimum wage that applies where you earned the wages (federal, state or local) for each week. For child support, 50% is protected.

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

Up to $2,400 total in bank and investment accounts is protected (plus money from exempt sources such as benefits). It is part of a $15,000 'any property' exemption. (NMSA 1978, § 42-10-1(A)(14), as amended by Laws 2023, SB 216)

Do debt collectors need a license in New Mexico?

Yes. New Mexico Regulation and Licensing Department, Financial Institutions Division (FID). FID says its licenses cover all third-party debt collection; its page links to NMLS to verify a licensee.

Does New Mexico have its own debt collection law?

Yes: the Collection Agency Regulatory Act (licensing) and Attorney General rule on time-barred debt (12.2.12 NMAC, under the Unfair Practices Act) (NMSA 1978, ch. 61, art. 18A; 12.2.12 NMAC). It also covers original creditors collecting their own debts.

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

Magistrate or Metropolitan Court: file an answer within 20 days after the summons is served on you (form 4-204). District Court: file a written response within 30 days after you are served (form 4-206).

Does New Mexico protect people with medical debt?