Nebraska Fair Debt Collection Practices Act

Harassment from a debt collector can be a frightening experience.  The Fair Debt collection Practices Act provides protection for consumers against harassment or other abusive practices.  Some states have enacted their own laws to protect consumers from abusive collection practices.  In Nebraska, there are state laws that apply to debt collectors.

The Nebraska debt collection law covers collection agencies, but it excludes attorneys that handle claims in their own names and not operating a collection agency under the management of a lay person. Neb. Rev. Stat. §§45-601 to 45-623.That is, if a lawyer truly is using the legal system to collect debts, he or she will not be covered under this law.  However, if the lawyer is just renting out his name to a collection agency, that lawyer will be controlled by the Nebraska law.

The statute is a licensing statute – requiring the collector to be licensed to collect in this state.  However, there is no mention of any private remedies.

There is also Neb. Rev. Stat. §§45-1043 to 45-1058 which specifically covers installment loan licensees.   This law limits a lender’s communications with consumers and third parties, prohibits certain specified abusive and harassing practices as well as misrepresentations that loosely follows the FDCPA.  Private remedies are allowed for actual damages and liquidated damages of $500 to $1000 plus attorneys fees and costs.