Vermont Debt Collection Laws | Debt Collector Map

Your federal rights

These federal rules apply in Vermont and every other state. Vermont'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.

Vermont law and extra protections

State law: Vermont Consumer Protection Act and Attorney General Consumer Protection Rule CP 104 (Debt Collection)
Law: 9 V.S.A. §§ 2453, 2461; Vt. Admin. Code CP 104
Covers original creditors: Yes
Extra protections: Collectors, including creditors collecting their own debts, may not tell your employer about the debt before a court judgment unless you or your lawyer agree in writing (CP 104.03(a), 104.07(1)).
They may not discuss your debt with family members other than your spouse (or parents of a minor), except after judgment or with consent (CP 104.03(b)).
They may not get you to sign an acknowledgment of a time-barred or bankrupt debt without clearly explaining its effect and that you don't have to (CP 104.05(a)).
They may not keep calling your workplace against your instructions (CP 104.02(e)); the AG says contact is limited to 8 a.m.–9 p.m.
Can you sue under it?: Yes. Breaking an AG rule is prima facie proof of an unfair practice (9 V.S.A. § 2453(d)). You can sue for your damages or the money you paid, reasonable attorney's fees, and exemplary damages up to three times what you paid (9 V.S.A. § 2461(b)).
Official text: Read the law

Old debts in Vermont

Written contracts: 6 years
Open accounts and unwritten agreements: 6 years
Does a payment restart the clock?: The limitations chapter keeps the effect of a payment of principal or interest (12 V.S.A. § 592), which generally restarts the clock; a note of payment written by the creditor alone is not enough proof.
Must collectors say a debt is too old?: No general disclosure rule. A collector must explain the effect before getting you to acknowledge a time-barred debt (CP 104.05(a)). Under federal Regulation F, a debt collector may not sue or threaten to sue on a time-barred debt (12 C.F.R. § 1006.26(b)).
Law: 12 V.S.A. § 511 (civil actions: 6 years); 12 V.S.A. § 592
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 Vermont'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 Vermont

Wage limit: Stricter for consumer credit debts: you keep the greater of 85% of weekly disposable earnings or 40 times the federal minimum wage. Other debts: you keep the greater of 75% or 30 times the federal minimum wage. You can ask the court to protect more if you need it for basic expenses for you and your dependents.
Head of household: No fixed head-of-household rule, but the court must protect more if your reasonable weekly expenses for yourself and dependents exceed the standard amount (12 V.S.A. § 3170(b)(3)). No wage garnishment if you got DCF or DVHA assistance in the 2 months before the hearing (§ 3170(a)).
Bank account: $700 in bank deposits (12 V.S.A. § 2740(15)).
Law: 12 V.S.A. § 3170; 12 V.S.A. § 2740

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 Vermont

Homestead up to $125,000 (27 V.S.A. § 101). Motor vehicles up to $2,500, household goods up to $2,500, plus a $400 wildcard and up to $7,000 of unused amounts (12 V.S.A. § 2740).

Collector licensing in Vermont

License required: No statewide license
Who licenses: No general collection agency license found. The Department of Financial Regulation licenses lenders, loan servicers and debt adjusters, but its license list has no collection agency category.
Check a license: Official license lookup

Medical debt in Vermont

Act 21 of 2025 (effective July 1, 2025): credit bureaus may not report or keep medical debt in your file (9 V.S.A. § 2466d), and large health care facilities and medical debt collectors may not report medical debt to credit bureaus (18 V.S.A. § 9485(b)). Large health care facilities may sell medical debt only to a charity that cancels it (18 V.S.A. § 9485(a); the section was first added in 2022 and amended by Act 21). Act 21 also funded a $1 million State Treasurer program to buy and cancel some Vermonters' medical debt. Small claims court can't hear collection of consumer credit or medical debt over $5,000 (12 V.S.A. § 5531(e)). 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 Vermont

Time to answer: Small claims: if the papers came by mail, you have 30 days from the date they were mailed to file an answer; if a sheriff or constable served you, 30 days from the date of service (Vermont Judiciary). Civil division: file an answer by the deadline stated in the summons.
If you don't answer: If you don't answer after being served by a sheriff or constable, the plaintiff may ask for a default judgment, and the judge can enter one if the plaintiff proves the claim (Vermont Judiciary).
Court self-help: Vermont court self-help (official)

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

Where to complain in Vermont

Vermont: Vermont Attorney General – Consumer Assistance Program (CAP) · 800-649-2424
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 Vermont

Good to know in Vermont

Vermont's debt collection rule applies to creditors collecting their own debts, not just collection agencies (CP 104.07(1)).
Any waiver of Vermont's wage garnishment protections is void (12 V.S.A. § 3170(d)).

Changes in 2024–2026

2025: Act 21 bans medical debt credit reporting (9 V.S.A. § 2466d; 18 V.S.A. § 9485(b)) and funds a $1 million medical debt relief program through the State Treasurer (effective July 1, 2025). 18 V.S.A. § 9485 (limits on sale and reporting by large facilities) was first added by Act 119 of 2021 adj. sess., effective July 1, 2022, and amended by Act 21.

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 Vermont

What is the statute of limitations on debt in Vermont?

6 years for written contracts and 6 years for open accounts and unwritten agreements (12 V.S.A. § 511 (civil actions: 6 years); 12 V.S.A. § 592).

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

The limitations chapter keeps the effect of a payment of principal or interest (12 V.S.A. § 592), which generally restarts the clock; a note of payment written by the creditor alone is not enough proof.

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

No general disclosure rule. A collector must explain the effect before getting you to acknowledge a time-barred debt (CP 104.05(a)). Under federal Regulation F, a debt collector may not sue or threaten to sue on a time-barred debt (12 C.F.R. § 1006.26(b)).

How much of my paycheck can be garnished in Vermont?

Stricter for consumer credit debts: you keep the greater of 85% of weekly disposable earnings or 40 times the federal minimum wage. Other debts: you keep the greater of 75% or 30 times the federal minimum wage. You can ask the court to protect more if you need it for basic expenses for you and your dependents.

How much money in a bank account is protected in Vermont?

$700 in bank deposits (12 V.S.A. § 2740(15)).

Do debt collectors need a license in Vermont?

No. No general collection agency license found. The Department of Financial Regulation licenses lenders, loan servicers and debt adjusters, but its license list has no collection agency category.

Does Vermont have its own debt collection law?

Yes: the Vermont Consumer Protection Act and Attorney General Consumer Protection Rule CP 104 (Debt Collection) (9 V.S.A. §§ 2453, 2461; Vt. Admin. Code CP 104). It also covers original creditors collecting their own debts.

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

Small claims: if the papers came by mail, you have 30 days from the date they were mailed to file an answer; if a sheriff or constable served you, 30 days from the date of service (Vermont Judiciary). Civil division: file an answer by the deadline stated in the summons.

Does Vermont protect people with medical debt?

Act 21 of 2025 (effective July 1, 2025): credit bureaus may not report or keep medical debt in your file (9 V.S.A. § 2466d), and large health care facilities and medical debt collectors may not report medical debt to credit bureaus (18 V.S.A. § 9485(b)). Large health care facilities may sell medical debt only to a charity that cancels it (18 V.S.A. § 9485(a); the section was first added in 2022 and amended by Act 21). Act 21 also funded a $1 million State Treasurer program to buy and cancel some Vermonters' medical debt. Small claims court can't hear collection of consumer credit or medical debt over $5,000 (12 V.S.A. § 5531(e)). 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 Vermont?

Vermont Attorney General – Consumer Assistance Program (CAP): https://ago.vermont.gov/cap/get-help-consumer-complaint · 800-649-2424

Sources

Last checked: Oct 24, 2026.

Federal sources

Debt collectors in Vermont: your rights