Here is the rule that sets Arkansas apart: almost any business that collects consumer debts in Arkansas must hold a license issued by the Arkansas State Board of Collection Agencies. Under Arkansas Code Title 17, Chapter 24, a collection agency cannot legally operate in the state without registering with the Board, paying its fees, and posting a surety bond. The federal Fair Debt Collection Practices Act (FDCPA) imposes no licensing requirement at all, so this is a genuine layer of protection that exists only because of Arkansas law. If a collector demanding money from you is not licensed by the Board, that is a serious red flag and may itself be a violation you can report.
Arkansas's licensing requirement in plain terms
The Arkansas State Board of Collection Agencies regulates collection agencies, debt buyers, and the people who collect on their behalf. The Board reviews applications, requires a bond to protect consumers and creditors against misconduct, and can investigate complaints, suspend or revoke licenses, and impose discipline. Because licensure is mandatory, you have the right to ask any collector whether it is licensed in Arkansas and to verify that claim with the Board before you pay anything.
This matters practically. A licensed agency has something to lose if it abuses you, and the Board provides a state-level forum for complaints that is separate from a federal lawsuit. It is wise to confirm a collector's standing before negotiating, because settling a debt with an unlicensed or unauthorized party can leave you exposed if a different entity later claims the same account.
How Arkansas protections go beyond the FDCPA
The federal FDCPA already bans abusive, deceptive, and unfair collection tactics by third-party collectors: no calls before 8 a.m. or after 9 p.m., no harassment or threats, no false statements about the amount or legal status of a debt, and a duty to validate the debt in writing if you ask within 30 days. Arkansas does not take those rights away; it adds to them in several ways.
State licensing and oversight. As above, the Board can sanction collectors operating in Arkansas, including in-state collectors whose conduct the FDCPA may not always reach in the same way.
Attorney General enforcement under the Deceptive Trade Practices Act. Arkansas's Deceptive Trade Practices Act (Arkansas Code Title 4, Chapter 88) prohibits deceptive and unconscionable business conduct broadly. The Arkansas Attorney General can use this statute against collectors who lie about a debt, threaten action they cannot legally take, or attempt to collect money that is not owed. This gives you a state enforcer in addition to your federal rights.
Strong exemptions that limit what a collector can actually take. Even after a collector wins a judgment, Arkansas law restricts how much of your wages and property it can seize, discussed below.
Wage garnishment: the federal cap plus an Arkansas wrinkle
For garnishment, the federal floor under the Consumer Credit Protection Act applies in Arkansas: a creditor with a judgment generally cannot take more than 25% of your disposable earnings, or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage, whichever is less. That federal 25% cap is the baseline everywhere.
Arkansas layers an additional protection on top. The state exempts a portion of the wages of laborers and mechanics, and Arkansas's personal-property exemptions under Article 9 of the Arkansas Constitution can shield wages that have been paid. The catch is that Arkansas's constitutional personal-property exemption amounts are very low by modern standards, so the practical benefit can be limited. Because the interaction of the wage exemption and the constitutional cap is technical and the dollar figures are small and fixed in the constitution, you should not rely on a single number you read online. Confirm how much of your wages is protected in your specific situation with the court clerk handling the garnishment or with a legal aid attorney.
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The statute of limitations on Arkansas debts
A collector can ask you to pay an old debt forever, but it generally cannot win a lawsuit on a debt once the statute of limitations has expired. In Arkansas, the limitations period depends on the type of debt. Written contracts generally carry a five-year limitations period under Arkansas Code section 16-56-111, while open accounts and certain oral obligations carry a shorter period, commonly three years. Which category your credit card or medical debt falls into can be disputed, and the clock's start date matters, so treat these as general guideposts rather than a guarantee about your account.
One critical warning: making a payment or even acknowledging an old debt in writing can restart the limitations clock in many situations. If a collector is pressing you to make a "good faith" payment on a very old account, get the exact dates and the contract type confirmed before you pay, because a small payment can revive your full legal exposure. When in doubt, consult an attorney before paying or signing anything on a debt you think may be time-barred.
What collectors cannot do to you
Call you repeatedly to annoy or harass you, or use obscene or threatening language.
Contact you at unusual times or places, including before 8 a.m. or after 9 p.m. your local time.
Tell your employer, neighbors, or family the details of your debt.
Threaten arrest, jail, or lawsuits they do not intend or are not legally able to pursue.
Misrepresent the amount you owe or pretend to be a lawyer, court, or government agency.
Continue collecting after you dispute the debt in writing until they send you validation.
You can demand verification of a debt, and you can tell a collector in writing to stop contacting you. Both are federal rights under the FDCPA that apply fully in Arkansas.
How to file a complaint in Arkansas
You have two main state avenues, and you can use both.
The Arkansas Attorney General's Consumer Protection Division. The Attorney General accepts consumer complaints about abusive or deceptive collection practices and can investigate patterns of misconduct under the Deceptive Trade Practices Act. You can file a complaint online through the Attorney General's official website or by calling the Consumer Protection hotline. Keep copies of letters, voicemails, account statements, and a log of calls; documentation makes your complaint far stronger.
The Arkansas State Board of Collection Agencies. Because the Board licenses collectors, it is the right place to report a collector you believe is unlicensed or that has violated the rules governing licensed agencies. The Board can confirm whether an agency is licensed and can act against its license.
For federal issues, you can also complain to the Consumer Financial Protection Bureau and the Federal Trade Commission, and you may have a private right to sue under the FDCPA, which allows for statutory damages plus attorney's fees if a collector violated the law.
Verify before you act
Debt-collection rules, exemption amounts, and licensing requirements change, and the facts of your account control the outcome. Before you pay, settle, or respond to a lawsuit, confirm the current law with the Arkansas Attorney General's Consumer Protection Division and the Arkansas State Board of Collection Agencies, and consider speaking with an Arkansas legal aid office or a licensed attorney. Treat the figures here as a starting point for your research, not a substitute for advice on your specific debt.
Official Arkansas Sources
This page is based on Arkansas law. Limits and deadlines change — verify the current details directly with the official Arkansas sources below. This is general legal information, not legal advice.
Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Arkansas’s own rules.
Frequently asked questions
Do debt collectors have to be licensed in Arkansas?
Yes. Under Arkansas Code Title 17, Chapter 24, collection agencies operating in Arkansas must be licensed by the Arkansas State Board of Collection Agencies and post a bond. The federal FDCPA has no licensing requirement, so this is an extra Arkansas-specific protection. You can ask a collector whether it is licensed and verify with the Board.
How much of my wages can a collector garnish in Arkansas?
The federal cap applies as a floor: generally no more than 25% of your disposable earnings, or the amount over 30 times the federal minimum wage, whichever is less. Arkansas also exempts certain wages of laborers and mechanics, though the state's constitutional property-exemption amounts are low. Confirm the exact figures with the court clerk or a legal aid attorney.
What is the statute of limitations on debt in Arkansas?
It depends on the debt type. Written contracts generally have a five-year limitations period under Arkansas Code section 16-56-111, while open accounts and certain oral debts commonly fall under a shorter, roughly three-year period. The category and start date can be disputed, so verify before assuming a debt is time-barred, and beware that a payment can restart the clock.
Where do I file a complaint against a debt collector in Arkansas?
File with the Arkansas Attorney General's Consumer Protection Division, which enforces the Deceptive Trade Practices Act, and with the Arkansas State Board of Collection Agencies for licensing violations. You can also complain to the federal CFPB and FTC, and you may sue under the FDCPA for damages and attorney's fees.
Can a collector sue me on a very old debt in Arkansas?
A collector can ask you to pay at any time, but it generally cannot win a lawsuit once the statute of limitations has run. Making a payment or acknowledging the debt in writing can restart that clock in many cases, so get the contract type and key dates confirmed before paying anything on an old account.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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