Nebraska debt collection laws draw from both federal protections and Nebraska-specific statutes that go further than federal law in several ways. Nebraska requires debt collectors to register with the Secretary of State before conducting business in the state, a requirement that many consumers, and even some collectors, are not aware of.
If a collector contacting you is not properly registered in Nebraska, its collection activity may, depending on the facts, be unlawful.
This page covers Nebraska’s statute of limitations by debt type, the state’s utility and telecom credit reporting rules, garnishment limits, debt settlement regulations, and how to check whether a collector operating in Nebraska is properly registered.
Nebraska Statute of Limitations by Debt Type
| Debt Type | Limit | Nebraska Statute |
|---|---|---|
| Written contracts (credit cards, personal loans) | 5 years | Neb. Rev. Stat. § 25-205 |
| Promissory notes | 5 years | Neb. Rev. Stat. § 25-205 |
| Oral contracts | 4 years | Neb. Rev. Stat. § 25-206 |
| Open accounts (store cards, revolving credit) | 4 years | Neb. Rev. Stat. § 25-206 |
| Nebraska court judgments | 5 years | Neb. Rev. Stat. § 25-1515 |
| Credit report reporting window (all debt types) | 7 years | Federal FCRA |
The clock generally starts from the date of first delinquency, meaning your first missed payment. Making a payment, acknowledging the debt in writing, or entering a payment plan can potentially restart the limitations period. It is generally advisable to consult an attorney before making any payment on a debt you believe may be time-barred.
Nebraska’s Debt Collector Registration Requirement
Nebraska law generally requires debt collectors to register with the Nebraska Secretary of State before conducting collection business in the state. This is a Nebraska-specific requirement that federal law does not impose, and it gives Nebraska consumers an additional layer of protection that residents of many other states do not have.
If a collection agency contacts you and is not properly registered in Nebraska, its collection activity may violate state law. You can check whether a collector is registered through the Nebraska Secretary of State’s office. If a collector is operating without proper registration, that may be worth reporting to the Nebraska Attorney General’s Consumer Protection Division and may strengthen a legal claim you choose to pursue.
Collectors operating in Nebraska are also generally required to comply with the Nebraska Consumer Protection Act and the Uniform Deceptive Trade Practices Act, state statutes that supplement federal FDCPA protections. When a collector’s conduct potentially violates both state and federal law, a consumer’s legal position may be stronger as a result.
Nebraska Credit Reporting Rules for Utility and Telecom Debts
Nebraska has specific statutory protections for consumers dealing with utility and telecommunications debt credit reporting under Neb. Rev. Stat. § 45-623. These rules govern how utility companies and telecom providers, along with the collectors they hire, can report delinquent accounts to credit bureaus.
Key protections under Nebraska’s utility and telecom credit reporting rules:
- Collectors generally cannot add interest or fees to utility or telecom debt balances unless authorized by the original service contract or state law.
- If you dispute a utility or telecom debt, the collector is generally required to investigate and respond before continuing collection and credit bureau reporting.
- Reporting inaccurate balances for utility or telecom debts, including amounts inflated by unauthorized fees, may violate both Nebraska statute and the federal Fair Credit Reporting Act.
If a collection agency or utility company is reporting a Nebraska utility or telecom debt that includes amounts you did not authorize or that you dispute, you generally have grounds to challenge that entry with Equifax, Experian, and TransUnion directly, and may have a separate legal claim under Neb. Rev. Stat. § 45-623.
What Nebraska Law Generally Prohibits Collectors From Doing
Nebraska collectors are generally required to comply with both the federal Fair Debt Collection Practices Act and Nebraska’s own consumer protection statutes. Under these combined frameworks, collectors in Nebraska generally cannot:
- Use obscene or profane language, or make repeated calls intended to annoy or harass you
- Threaten violence or any illegal course of action
- Call before 8 a.m. or after 9 p.m. in your time zone
- Contact your employer after being told that your employer prohibits personal calls
- Discuss your debt with third parties except to locate you
- Falsely claim to be attorneys, law enforcement, or government officials
- Threaten arrest for an unpaid consumer debt, since consumer debt is a civil matter, not a criminal one
- Misrepresent the amount owed or add unauthorized interest or fees
- Collect a debt without being registered with the Nebraska Secretary of State
Nebraska Statute of Limitations: What “Time-Barred” Means
Once a debt passes Nebraska’s statute of limitations, it generally becomes “time-barred.” A collector can generally still contact you about a time-barred debt, but it generally cannot successfully sue you in Nebraska courts to collect it. The clock typically starts from the date of your last payment or last written acknowledgment of the debt.
Two things are worth watching for: making even a small payment can potentially restart Nebraska’s limitations period, and some collectors file lawsuits on time-barred debts hoping for a default judgment. If you receive a summons in Nebraska, it is generally important to respond before the deadline, typically 30 days, and to raise the statute of limitations as a defense. Ignoring a lawsuit generally results in a default judgment regardless of whether the debt was time-barred.
Nebraska Debt Settlement Laws and Regulations
Nebraska regulates debt settlement services under state consumer protection law. Companies offering debt settlement services in Nebraska, meaning those promising to negotiate your debts for a fee, are generally required to comply with specific disclosure and fee requirements.
Key points for Nebraska residents considering debt settlement:
- Nebraska generally prohibits debt settlement companies from collecting fees before successfully settling at least one of your debts.
- Settlement terms are generally required to be disclosed in writing before you sign any agreement.
- You generally have the right to cancel a debt settlement agreement within a specific period after signing.
- Debt settlement companies generally cannot make false promises about outcomes or timelines.
If a debt settlement company in Nebraska may have violated these requirements, consider filing a complaint with the Nebraska Attorney General’s Consumer Protection Division.
Nebraska Garnishment Laws
Nebraska collectors generally cannot garnish your wages without first filing a lawsuit, winning a court judgment, and obtaining a separate garnishment order. The process generally requires court approval at every step; a collector cannot simply decide to take money from your paycheck.
Under Neb. Rev. Stat. § 25-1558 and federal law, Nebraska garnishment is generally capped at the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage. The more protective limit generally applies, meaning whichever formula keeps more money in your pocket.
Certain income is generally protected from garnishment in Nebraska, including:
- Social Security benefits
- Disability payments
- Unemployment compensation
- Most pension and retirement income
If you receive garnishment papers, it is generally important to respond promptly. Nebraska law generally allows you to challenge garnishments that would cause undue hardship and to claim exemptions for protected income. Missing the response deadline can forfeit these protections, so it is generally advisable to contact an attorney promptly upon receiving garnishment papers.
Medical Debt and Nebraska’s Unique Challenges
Healthcare debt drives many Nebraskans into collection situations. Billing errors, incorrect insurance denials, and provider billing mistakes can all produce collection notices for amounts a patient may not actually owe. Nebraska residents facing medical debt collection may want to verify the following before paying anything:
- Whether your insurer’s explanation of benefits (EOB) matches what the collector claims.
- Whether the medical debt is subject to the one-year waiting period before credit bureau reporting is generally permitted under federal rules.
- Whether the balance includes interest or fees beyond what the original provider billed.
Medical debts generally receive the same legal protections as other consumer debt under Nebraska and federal law. You can generally dispute inaccurate medical bills, request validation, and pursue a claim for harassment; the type of underlying debt generally does not change your rights.
Automated Calls and Text Messages: Nebraska TCPA Protections
The Telephone Consumer Protection Act protects Nebraska consumers from automated collection calls and texts made without prior express consent. Each unauthorized automated call or text to a cell phone may, depending on the facts, be worth $500 to $1,500 in TCPA damages, separate from and in addition to any FDCPA violation. Providing a cell number to an original creditor years ago does not, by itself, authorize a debt buyer or collection agency to robocall that number.
How The Wood Firm PLLC Approaches Nebraska Debt Collection Matters
Nebraska’s registration requirement, its utility and telecom credit reporting statute, and the combined federal-state framework give Nebraska consumers more legal tools than many other states provide. The Wood Firm PLLC has handled FDCPA, FCRA, and TCPA matters exclusively since 2010. Representation in qualifying matters is generally handled on a contingency basis, meaning a consumer generally pays nothing upfront, and a collector may be required to pay attorney fees if the case succeeds.
About Attorney Jeff Wood
Jeff Wood founded The Wood Firm PLLC to focus exclusively on consumer protection matters, including FDCPA, FCRA, and TCPA cases. With more than 15 years of experience and Of Counsel relationships with attorneys licensed in Arizona, California, Florida, Louisiana, Minnesota, Missouri, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Washington, and West Virginia, he has represented consumers exclusively and has not represented creditors or collection agencies.
Common Questions About Nebraska Debt Collection Laws
Does Nebraska require debt collectors to register before collecting?
Yes. Nebraska generally requires debt collectors to register with the Secretary of State before conducting collection business in the state. This is a Nebraska-specific requirement that goes beyond federal law. If a collector contacts you without proper Nebraska registration, its collection activity may be unlawful. You can check registration through the Nebraska Secretary of State’s office.
What is the statute of limitations on debt in Nebraska?
Written contracts and promissory notes generally carry a 5-year limit under Neb. Rev. Stat. § 25-205. Oral contracts and open accounts generally carry a 4-year limit under Neb. Rev. Stat. § 25-206. The clock generally runs from your last payment or last written acknowledgment of the debt. After the limitations period expires, a collector generally cannot successfully sue you in Nebraska court, though it may still attempt to contact you.
What are Nebraska’s credit reporting laws for utility and telecom debts?
Nebraska has specific protections under Neb. Rev. Stat. § 45-623 governing how utility and telecom debts are reported to credit bureaus. Collectors generally cannot add unauthorized interest or fees to these balances, and are generally required to investigate disputes before continuing to report. If a collector is reporting a Nebraska utility or telecom balance that includes amounts you did not authorize or that is in dispute, you generally have grounds to challenge that entry and may have a separate state law claim.
Can a Nebraska collector garnish my wages without a court judgment?
No. A Nebraska collector is generally required to file a lawsuit, win a judgment, and obtain a separate court order before garnishing wages. Garnishment is generally capped at the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum wage weekly. Social Security, disability, unemployment, and most pension income are generally exempt from garnishment in Nebraska. If you receive garnishment papers, it is generally important to respond before the deadline and claim any exemptions that apply.
What is zombie debt, and how does Nebraska’s statute of limitations protect me?
Zombie debt generally refers to time-barred debt that a collector continues pursuing after the limitations period has expired. In Nebraska, a collector can generally still contact you about zombie debt but generally cannot successfully sue to collect it. It is generally advisable not to pay or acknowledge a debt you believe may be time-barred without consulting an attorney first, since doing so can potentially restart Nebraska’s limitations period. If a collector threatens to sue on a time-barred Nebraska debt, that threat may itself raise a concern under the FDCPA.
Can I raise a claim against a Nebraska debt collector even if I owe the debt?
Yes, generally. Owing a debt does not, by itself, authorize a collector to violate the law. Nebraska and federal law generally protect consumers regardless of whether the underlying debt is valid. If a collector used abusive language, threatened arrest, called at prohibited hours, collected without Nebraska registration, or otherwise violated applicable law, a consumer may, depending on the facts, be able to pursue a legal claim independent of the debt itself.
