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Florida debt collection laws are shaped by both federal and state regulations, with strict rules for collectors and clear protections for consumers. Here's what you need to know:
Understanding these laws helps protect both collectors and consumers while ensuring compliance with Florida's legal framework.
Florida Debt Collection Statutes of Limitations by Debt Type
Knowing the legal deadlines for debt collection in Florida is essential for maintaining compliant and effective portfolios. These statutes of limitations set strict timeframes for filing lawsuits to recover debts. For example, written contracts and promissory notes come with a 5-year deadline for legal action. On the other hand, oral agreements and open accounts, such as credit card debt without a signed contract, are limited to 4 years. Mortgage foreclosures also follow the 5-year rule, while deficiency judgments on residential properties must be filed within 1 year of a foreclosure sale. Medical debt from licensed facilities referred to third-party collectors now has a 3-year limitation period starting from the referral date, and court judgments remain enforceable for up to 20 years.
| Debt Type | Statute of Limitations | Florida Statute Reference |
|---|---|---|
| Written Contracts / Promissory Notes | 5 Years | § 95.1110 |
| Oral Agreements | 4 Years | § 95.112 |
| Open Accounts (Credit Cards without contract) | 4 Years | § 95.112 |
| Medical Debt (Licensed Facility) | 3 Years | § 95.11 |
| Foreclosure Deficiency (Residential) | 1 Year | § 95.1112 |
| Domestic Judgments | 20 Years | § 95.11 |
These deadlines play a critical role in shaping debt collection strategies. Acting promptly within these windows is crucial to preserving the value of a debt portfolio.
The age of a debt significantly influences its recovery potential. Debts that are 1–2 years old often have resolution rates of 60–70%. However, as debts approach the 4- or 5-year mark, their recoverable value declines because the legal timeframe for collection is running out. Once the statute of limitations expires, the debt becomes "time-barred", meaning creditors lose the right to sue for collection.
Another factor to consider is the classification of the debt. Without the original contract, courts may reclassify it as an open account, reducing the statute of limitations from 5 years to 4 years.
"Debt buyers (like Midland Funding or Portfolio Recovery) often buy debts in bulk spreadsheets and do not possess the original signed contracts. Without the physical contract, Florida courts may classify the debt as an 'Open Account' rather than a 'Written Contract.' This reduces the Statute of Limitations from 5 years down to 4 years."
- Gideon Alper, Asset Protection Attorney
One exception to the statute of limitations is if the debtor makes a payment - even as small as $1.00 - or provides a written acknowledgment of the debt. In such cases, the clock resets, giving creditors a fresh 5-year period to take legal action. Staying updated on statutory changes is critical for compliance and strategic planning.
Starting January 1, 2025, the statute of limitations for medical debt referred to third-party collectors has been reduced from 5 years to 3 years. Importantly, this period now begins on the date the debt is referred to a collection agency, not the date of service. For instance, if a hospital refers an unpaid bill on March 15, 2026, the lawsuit deadline would be March 15, 2029. Debt buyers need to carefully verify referral dates to ensure compliance and accurate portfolio valuation.
Florida's debt collection laws set clear boundaries to prevent harassment, deception, and abusive practices. The Florida Consumer Collection Practices Act (FCCPA) offers broader protections than federal regulations by applying to "any person" collecting a debt. This includes original creditors, not just third-party collectors. Following these rules is essential to ensure compliance and protect consumer rights.
Debt collectors in Florida are restricted from contacting consumers between 9:00 p.m. and 8:00 a.m. in the debtor's time zone. However, a 2025 amendment to Florida Statute § 559.72 clarified that this restriction does not apply to email communications. This distinction was reinforced in November 2024 by the U.S. District Court for the Southern District of Florida in the case of Nina Quinn-Davis vs. TrueAccord Corp. (Case No. 1:23-cv-23590). The court ruled that emails sent outside the "quiet hours" do not violate the FCCPA or FDCPA unless the consumer actually opens and reads them during those prohibited times. The reasoning? Unread emails lack the disruptive nature of late-night phone calls.
Collectors must also stop direct communication once they know a debtor is represented by an attorney. They can only resume contact if the attorney fails to respond within 30 days or explicitly consents to further communication. Additionally, contacting a debtor's employer is forbidden unless the collector has obtained a final judgment or written permission from the debtor. These rules set the stage for understanding the broader restrictions on harassment and misrepresentation.
The FCCPA outlines specific behaviors that are off-limits. Collectors are barred from impersonating law enforcement, government officials, or attorneys, as well as using any materials that falsely suggest such affiliations. They are also prohibited from using threats, violence, or profane language, and cannot contact debtors or their families so frequently that it becomes harassing.
Collectors must not threaten to enforce debts they know are invalid or claim legal rights that don’t exist. If a debt is disputed, collectors are required to disclose that dispute when reporting to credit bureaus or other third parties. Violations of these standards give consumers strong legal recourse.
Consumers subjected to illegal collection practices have robust protections under Florida law. They must file lawsuits within two years of the violation - double the one-year limit under federal law. Successful plaintiffs may receive up to $1,000 in statutory damages per action, in addition to actual damages, punitive damages, and reimbursement for attorneys' fees and court costs. For class action lawsuits, statutory damages are capped at the lesser of $500,000 or 1% of the defendant’s net worth.
Unregistered debt collection agencies face fines of up to $10,000. Consumers also have the right to end all contact by sending a written cease-and-desist request. After receiving this request, collectors may only contact the debtor to confirm cessation or notify them of specific legal actions.
Navigating Florida's debt market means adhering to strict rules around registration, verification, and documentation. These requirements are not just legal formalities - they protect consumers and shield businesses from hefty fines and legal troubles.
Before buying a debt portfolio, you need to confirm the chain of title to ensure proper ownership. Florida Rule of Civil Procedure 1.130 requires attaching the original signed contract to any lawsuit based on a written agreement. Without this, courts may treat the debt as an "Open Account", which reduces the statute of limitations from five years to four.
State registration is essential. Consumer collection agencies must register with the Florida Office of Financial Regulation (OFR) and renew annually between October 1 and December 31. The initial registration fee is $200, plus a $50 investigation charge. Commercial agencies register through the Florida Division of Consumer Finance's REAL system. However, certain entities, like original creditors, Florida Bar-licensed attorneys, and FDIC-insured institutions, are exempt [23, 24].
After purchasing a debt, Florida Statute § 559.715 mandates sending written notice of the assignment to the debtor within 30 days. Automated systems can help track these deadlines and avoid violations. It’s also crucial to verify the date of last activity to determine whether the debt falls within the statute of limitations - five years for written contracts and four years for open accounts or oral agreements.
Keep in mind that partial payments or a debtor's written acknowledgment can "reset" the statute of limitations, restarting the five-year period. Accurate records of all debtor interactions are critical for compliance and maintaining the value of your portfolio.
To stay compliant, maintain thorough records of all communications, including calls, emails, and text messages. This helps demonstrate adherence to both federal Regulation F and Florida's contact rules, which limit communication to between 8:00 a.m. and 9:00 p.m. in the debtor's time zone. Essential documentation includes original loan agreements, bank statements, payment histories, and any correspondence that supports the debt's validity.
If a consumer disputes the debt, you must halt collection efforts until proper verification is provided. This includes details like the original creditor's information and the payment history. Without these, you cannot proceed legally.
For commercial debt buyers seeking certification through the Commercial Collection Agency Association (CCAA), additional requirements include maintaining a separate Trust Account and posting a surety bond of at least $300,000.
If you secure a judgment, keep records such as the debtor's bank statements, tax returns, and check registers for at least four years. Florida court judgments remain enforceable for up to 20 years, far exceeding the initial filing window of four to five years. Good documentation not only ensures compliance but also minimizes risks in potential legal disputes.
Failing to comply with Florida's debt collection laws can lead to severe penalties. Operating without proper registration may result in administrative fines of up to $10,000. Additionally, under Florida Statute § 559.785, it is a first-degree misdemeanor to collect consumer debts without registering:
"It shall be a misdemeanor of the first degree... for any person not exempt from registering... to engage in collecting consumer debts in this state without first registering with the office." - Florida Statute § 559.785
Civil penalties can include statutory damages of up to $1,000 per violation, along with actual damages, punitive damages, and attorney's fees. For class action lawsuits, statutory damages are capped at the lesser of $500,000 or 1% of the defendant's net worth. Repeated violations may also result in administrative fines of up to $1,000 per occurrence.
If your agency receives five or more unresolved consumer complaints within a year, the OFR can issue warnings, suspend or revoke your registration, or even reprimand your agency. Registrations based on inaccurate or outdated information, like incorrect business names or addresses, are considered void under Florida law.
To reduce liability, you can rely on a "bona fide error" defense by proving that violations were unintentional and occurred despite reasonable measures to prevent them. Regularly updating compliance protocols, training staff, and auditing collection practices are essential steps to support this defense.
Dealing with time-barred debt in Florida can be tricky for both buyers and sellers. Once the statute of limitations expires - five years for written contracts and four years for open accounts - creditors lose the right to sue for a judgment. However, the debt itself doesn’t disappear. Collectors may still try to recover the money through other means, such as phone calls or letters, but they must tread carefully to avoid breaking Florida’s laws. This makes compliance and clear communication essential in debt collection.
Under the Florida Consumer Collection Practices Act (FCCPA), it’s illegal to “claim, attempt, or threaten to enforce a debt when such person knows that the debt is not legitimate, or assert the existence of some other legal right when such person knows that the right does not exist”. In simpler terms, collectors can’t suggest that suing over a time-barred debt is an option. Violating this law can result in statutory damages of up to $1,000 per incident.
Florida has recently tightened its debt collection laws. In 2025, the state passed CS for SB 232, amending Section 559.72 to crack down on prohibited practices and increase enforcement against out-of-state collectors. These updates, effective July 1, 2025, put more pressure on debt buyers chasing expired obligations.
Both the federal Fair Debt Collection Practices Act (FDCPA) and Florida’s FCCPA forbid misrepresenting a debt’s legal status. This means collectors must avoid any language that implies legal action is possible when dealing with time-barred debt. The statute of limitations is a defense that only works if the debtor brings it up. Attorney Gideon Alper explains:
"The court system does not automatically verify the age of a debt before entering a judgment. If a creditor files a lawsuit on a debt that is clearly past the legal time limit, the case will proceed normally unless the defendant objects".
In short, if the debtor invokes the statute of limitations, the court will likely dismiss the case. Collectors who proceed anyway could face penalties for violating the FCCPA.
If you’re buying a debt portfolio, it’s crucial to confirm the date of the last activity for every account. Without an original signed contract, courts may classify the debt as an "open account", which comes with a shorter four-year statute of limitations instead of five. This reclassification can reduce the value of the portfolio and limit collection efforts.
Transparency is key when managing time-barred debt. Every communication should clearly state that the debt is past the statute of limitations and that legal action isn’t an option. Avoid using phrases that could be seen as threats, like “this matter may be referred to our legal department” or “failure to respond may result in further action,” as these could violate the FCCPA.
You should also be cautious about debt revival. As Alper Law explains:
"If a debt is past the Statute of Limitations, it is 'dead.' However, making a payment of even $1.00 can legally 'revive' the entire debt and restart the 5-year clock from scratch".
While this is technically legal, using tactics to provoke even a small payment could be seen as deceptive and might draw regulatory attention under the updated FCCPA.
For sellers, having thorough documentation can protect the value of your debt portfolio. Providing original signed contracts ensures the five-year statute of limitations applies to written contracts. Without these documents, buyers may discount the portfolio’s value due to the shorter four-year limitation. Using secure file-sharing methods with encryption can help ensure the safe transfer of critical documentation and maintain compliance.
Finally, keep detailed records of all interactions with debtors. These records are essential for proving compliance with Florida’s debt collection laws. If a debtor disputes a debt or raises the statute of limitations as a defense, you’ll need evidence that your practices were lawful. This includes proof that no improper legal threats were made and that all communications clearly disclosed the debt’s status. Strong documentation not only protects against legal risks but also helps maintain the integrity of your portfolio.
Florida's debt collection rules require precision and adherence to strict timelines. Written contracts must be acted upon within five years, while open accounts have a four-year limit. Missing these deadlines can jeopardize the ability to collect.
The Florida Consumer Collection Practices Act (FCCPA) enforces compliance with steep penalties, including statutory damages of up to $1,000 per violation and administrative fines reaching $10,000 for registration lapses. These penalties underscore the importance of following the law for anyone involved in buying or selling debt in the state.
When handling debt portfolios, it's critical to verify the last activity date and secure original signed contracts. This ensures the collection period is valid and helps maintain the portfolio's value. Proper documentation and strict adherence to communication rules are equally important. For instance, only contact debtors between 8 a.m. and 9 p.m., and never imply the pursuit of time-barred debt. Keeping thorough records of all collection activities is essential to demonstrate compliance during regulatory reviews.
These guidelines form the backbone of ethical and legal debt collection practices in Florida.
In Florida, the clock for the statute of limitations on debt starts ticking from the moment the final element of the cause of action takes place. This could be the date of the last payment made, a written acknowledgment of the debt, or a written demand for payment - depending on the specific type of debt in question.
No, debt collectors are not legally allowed to contact you about a debt that has surpassed Florida’s statute of limitations. They are barred from pursuing or threatening legal action on debts that are time-barred. Additionally, repeated contact regarding such debts could be considered harassment under Florida law.
If you're sued for an old debt in Florida, it's important to know that the statute of limitations for most consumer debts is typically five years. If the debt is older than this, it might be considered time-barred, meaning you can use this as a defense in court.
Always make sure to respond to the lawsuit - ignoring it can result in a default judgment against you. Also, avoid making partial payments or acknowledging the debt, as this could restart the clock on the limitations period.
More than a decade of Ivan's career has been dedicated to Finance, Banking and Digital Solutions. From these three areas, the idea of a fintech solution called Debepxert was born. He started his career in Big Four consulting and continued in the industry, working as a CFO for publicly traded and digital companies. Ivan came into the debt industry in 2019, when company Debexpert started its first operations. Over the past few years the company, following his lead, has become a technological leader in the US, opened its offices in 10 countries and achieved a record level of sales - 700 debt portfolios per year.
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