Florida Debt Collection Laws & Compliance Guide

At Midwest Service Bureau, we collect in Florida under our documented compliance program. This guide outlines the essential compliance requirements for the Sunshine State.

Licensing Requirements in Florida

Florida has one of the more comprehensive registration systems for debt collection agencies:

• OFR registration: All consumer collection agencies must register with the Florida Office of Financial Regulation under F.S. § 559.553
• Surety bond: The $50,000 surety bond applies to commercial collection agencies (F.S. § 559.545)
• Registered agent: Must designate a registered agent located in Florida for service of process
• Annual renewal: Registration must be renewed annually, between October 1 and December 31 (F.S. § 559.555(6))
• Out-of-state agencies: Must register if collecting debts owed by Florida residents, regardless of the agency's location

The OFR conducts examinations of registered agencies, investigates consumer complaints, and has authority to impose administrative fines, suspend, or revoke registrations. Operating without registration is a first-degree misdemeanor for a consumer collection agency (F.S. § 559.785), punishable by up to 1 year of imprisonment, and a third-degree felony, punishable by up to 5 years, for a commercial collection agency (F.S. §§ 559.548(1)(a), 775.082).

Debt buyers operating in Florida are subject to the same registration requirements and must keep the bill of sale or other written document showing when and from whom each debt was acquired (Fla. Admin. Code R. 69V-180.080(9)(e)).

Statute of Limitations on Debt

Florida's statutes of limitation for debt collection are governed by F.S. § 95.11:

• Written contracts: 5 years (F.S. § 95.11(2)(b))
• Oral contracts: 4 years (F.S. § 95.11(3)(j))
• Promissory notes: 5 years (F.S. § 95.11(2)(b))
• Open accounts (credit cards): 4 years (F.S. § 95.11(3)(j))
• Medical debt owed to a hospital or ambulatory surgical center (facility licensed under ch. 395): 3 years from the date the facility refers the debt to a third party for collection (F.S. § 95.11(4))
• Domestic judgments: 20 years (one of the longest in the nation)

In Florida, a partial payment restarts the statute of limitations on a debt founded on a written instrument if it is made before the period runs (F.S. § 95.051(1)(f)). Once the period has run, a time-barred debt can be revived only by an acknowledgment or promise to pay that is in writing and signed by the debtor (F.S. § 95.04); a partial payment alone does not revive it. Florida courts have held that even a small payment made after the statute has begun running will reset the full limitations period.

Florida's 20-year judgment enforcement period is notably longer than most states. Judgments earn interest at a rate set by the CFO, and liens can be placed on real property through recording the judgment in the county where the property is located.

Prohibited Practices Under Florida Law

The FCCPA (F.S. §§ 559.55-559.785) prohibits the following practices, with some provisions extending beyond the federal FDCPA:

• Communication abuse: Using profane or obscene language, making calls with intent to harass, or calling at unreasonable times (before 8 a.m. or after 9 p.m.)
• Simulated legal process: Using documents that appear to be from a court or government agency when they are not — Florida is particularly strict about this
• Employer communication: Florida specifically prohibits informing a debtor's employer about the debt unless required by law or with the debtor's prior written consent
• False claim of legal action: Threatening to bring legal action with no intention or authority to do so
• Deceptive communications: Misrepresenting the amount, character, or legal status of the debt, or claiming to be an attorney when not
• Publication of debt: Publishing or posting a debtor's name on a list of delinquent debtors (deadbeat lists)
• Communication after dispute: Continuing collection efforts after a debtor has disputed the debt in writing until proper verification is provided

The FCCPA allows consumers to recover actual damages plus additional statutory damages of up to $1,000 as the court allows, plus court costs and attorney's fees (Fla. Stat. §559.77(2)). Class actions may also be brought under that section. The Florida Attorney General also has enforcement authority.

Key Florida Statutes for Debt Collection

• Florida Consumer Collection Practices Act: F.S. §§ 559.55-559.785 — primary state collection practices law
• Florida Deceptive and Unfair Trade Practices Act: F.S. §§ 501.201-501.213 — additional consumer protection remedies
• Wage garnishment: F.S. § 222.11 — head-of-household wage exemption
• Property exemptions: F.S. §§ 222.01-222.30 — homestead and personal property exemptions
• Statute of limitations: F.S. § 95.11 — limitation periods for debt actions
• Judgment liens: F.S. § 55.10 — recording and enforcement of judgment liens

Head-of-Household Wage Exemption

Florida's most distinctive debtor protection is the head-of-household exemption (F.S. § 222.11). Under this provision:

• A person who provides more than one-half of the support for a child or other dependent is considered the head of household
• The head of household's disposable earnings up to $750 per week are completely exempt from garnishment
• Above $750/week, a head of household's disposable earnings still may not be garnished unless he or she agreed to it in writing (F.S. § 222.11(2)(b))
• The exemption must be affirmatively claimed by filing a Claim of Exemption within 20 days of being served with garnishment papers

This exemption effectively shields many working parents from wage garnishment entirely, making post-judgment collection through bank levies and asset discovery more common in Florida.

Property Exemptions in Florida

• Homestead: Unlimited value, up to 1/2 acre in a municipality or 160 acres outside — among the strongest in the nation
• Personal property: $1,000 exempt (plus up to $4,000 more if the debtor does not claim or receive the homestead exemption, F.S. § 222.25(4))
• Annuities and life insurance: Cash surrender value and proceeds are fully exempt
• Retirement accounts: IRAs, 401(k)s, and qualified plans are exempt from creditors
• Disability and social security: Fully exempt from garnishment and levy

Compliance Best Practices for Florida Collections

• Maintain current OFR registration, plus the $50,000 surety bond for commercial collection agencies
• Never contact a debtor's employer about the debt without prior written consent
• Be aware of the head-of-household exemption when pursuing wage garnishment
• Track the statute of limitations carefully — a partial payment made before the period runs restarts the clock on a debt founded on a written instrument (F.S. § 95.051(1)(f))
• Avoid any documents that could be construed as simulated legal process
• Maintain proper validation notice procedures per the FDCPA (15 U.S.C. § 1692g)

For professional, compliant debt collection services in Florida, learn more about our Florida debt collection services or call us at (800) 362-0272.