In Nebraska, a company that collects debts owed to others generally must hold a license issued by the Nebraska Department of Banking and Finance under the Nebraska Collection Agency Act (Neb. Rev. Stat. §§ 45-601 through 45-622). That state licensing requirement is the central feature that sets Nebraska apart from the federal baseline: the federal Fair Debt Collection Practices Act (FDCPA) regulates how third-party collectors behave nationwide, but it does not require collectors to be licensed in any particular state. Nebraska adds that layer. If a collection agency operating in Nebraska is not licensed and bonded as the Act requires, that itself is a red flag and a potential violation you can report to the state.
Nebraska's own collection-agency statute and the licensing rule
The Nebraska Collection Agency Act treats collecting debts for others as a regulated business activity. A "collection agency" is, broadly, a person or company that engages in collecting claims owed to someone else. Under the Act, those agencies must obtain a license from the Department of Banking and Finance, maintain a surety bond, and handle money they collect through proper trust accounts. Licensing is administered by the Department, not by the Attorney General, so verifying whether a specific company is licensed is best done through the Department of Banking and Finance.
Why this matters to you as a consumer: licensing and bonding give Nebraska a tool the FDCPA lacks. The bond can provide a source of recovery if an agency mishandles funds, and the threat of license suspension or revocation gives the state leverage over agencies that abuse consumers. The federal FDCPA gives you a private right to sue, but it does not let a regulator pull a collector's permission to operate. Nebraska's regime does.
Note that creditors collecting their own debts (an "original creditor" pursuing its own account) are generally treated differently from third-party collection agencies, both under the FDCPA and under Nebraska's scheme. The licensing rule is aimed primarily at businesses in the collection trade, not at the original lender.
Protections that go beyond the FDCPA
The Nebraska Consumer Protection Act and deceptive practices
Beyond the Collection Agency Act, abusive or deceptive collection conduct can also violate the Nebraska Consumer Protection Act (Neb. Rev. Stat. §§ 59-1601 and following) and the Uniform Deceptive Trade Practices Act (§§ 87-301 and following). These statutes prohibit unfair and deceptive acts in trade or commerce and give consumers and the Attorney General avenues to act against businesses that lie about a debt, threaten action they cannot take, or otherwise mislead Nebraskans. This gives you a second state-law theory alongside the federal FDCPA.
Wage garnishment: Nebraska's head-of-family rule
Garnishment is where Nebraska law is more generous to many debtors than the federal floor. Federal law (the Consumer Credit Protection Act) generally caps wage garnishment at 25% of disposable earnings, or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage, whichever is less. Nebraska keeps that 25% ceiling for most debtors, but Neb. Rev. Stat. § 25-1558 lowers the cap to 15% of disposable earnings if the debtor is the head of a family. That head-of-household protection is a Nebraska-specific benefit that the bare federal cap does not provide. If you support dependents and a creditor is garnishing 25% of your check, confirm whether the 15% limit should apply.
Statute of limitations on collecting a debt
Nebraska sets time limits on how long a creditor or collector can sue you on an old debt. Under Neb. Rev. Stat. § 25-205, an action on a written contract generally must be brought within five years. Under § 25-206, an action on an oral contract or an unwritten/open account generally must be brought within four years. These deadlines matter because suing on a debt that is past the limitations period, or threatening to, can expose a collector to liability. The limitations clock and how a partial payment or written acknowledgment can affect it are fact-specific, so confirm the applicable period for your particular debt before relying on it.
How to enforce your rights
You generally have several overlapping options:
Demand validation in writing. The federal FDCPA lets you dispute the debt and request validation, typically within 30 days of the collector's first notice. Keep copies of everything.
Tell the collector to stop contacting you. Under the FDCPA you can send a written cease-communication request to a third-party collector; after that, contact is sharply limited.
Check the license. Confirm with the Nebraska Department of Banking and Finance whether the collection agency is licensed and bonded.
Sue for violations. The FDCPA allows private lawsuits with potential statutory damages plus actual damages and attorney fees. The Nebraska Consumer Protection Act provides additional remedies for deceptive conduct.
Raise garnishment limits in court. If you are a head of family, assert the 15% cap; if a debt is time-barred, raise the statute of limitations as a defense.
How to file a complaint with the Nebraska Attorney General
For deceptive, harassing, or unfair collection practices, the office to contact is the Nebraska Attorney General's Consumer Protection Division. The Attorney General accepts written consumer complaints, can investigate patterns of unlawful conduct, and enforces the Nebraska Consumer Protection Act. When you file, include the collector's name and contact information, the amount and nature of the alleged debt, dates and a description of the conduct, and copies of letters, account statements, and any call records you have. Filing a complaint does not replace your private legal remedies, but it puts the conduct on the state's radar and can prompt enforcement.
If your concern is specifically about whether an agency is licensed or has mishandled collected funds, direct that inquiry to the Nebraska Department of Banking and Finance, which administers the Collection Agency Act. For abusive practices and deception, go to the Attorney General's Consumer Protection Division.
Where to verify
Because statutes and contact procedures change, confirm the details before you act. Read the current text of the Nebraska Collection Agency Act (§§ 45-601 to 45-622), the garnishment limits in § 25-1558, and the limitations periods in §§ 25-205 and 25-206 through the Nebraska Legislature's official statute site. Verify a collector's license with the Nebraska Department of Banking and Finance, and use the Nebraska Attorney General's Consumer Protection Division for complaints. When in doubt about how a rule applies to your specific debt, consult a Nebraska-licensed attorney or a nonprofit legal-aid office.
Official Nebraska Sources
This page is based on Nebraska law. Limits and deadlines change — verify the current details directly with the official Nebraska 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 Nebraska’s own rules.
Frequently asked questions
Do debt collectors have to be licensed in Nebraska?
Generally yes. Under the Nebraska Collection Agency Act (Neb. Rev. Stat. §§ 45-601 to 45-622), a company that collects debts owed to others must be licensed and bonded through the Nebraska Department of Banking and Finance. The federal FDCPA has no such licensing requirement, so this is an added Nebraska protection. You can ask the Department to confirm whether a specific agency is licensed.
How much of my wages can be garnished in Nebraska?
Federal law caps wage garnishment at about 25% of disposable earnings for most debts. Nebraska keeps that 25% ceiling for most debtors but, under Neb. Rev. Stat. § 25-1558, lowers it to 15% of disposable earnings if you are the head of a family. If you support dependents, confirm whether the 15% limit should apply to you.
How long can a collector sue me on an old debt in Nebraska?
Nebraska generally allows five years to sue on a written contract (Neb. Rev. Stat. § 25-205) and four years on an oral contract or open account (§ 25-206). Suing on or threatening to sue on a time-barred debt can create liability for a collector. Because partial payments and written acknowledgments can affect the clock, confirm the period for your specific debt.
Where do I file a complaint about a debt collector in Nebraska?
For harassing, deceptive, or unfair collection conduct, file with the Nebraska Attorney General's Consumer Protection Division, which enforces the Nebraska Consumer Protection Act. For questions about whether an agency is licensed or has mishandled funds, contact the Nebraska Department of Banking and Finance, which administers the Collection Agency Act.
Does Nebraska law add anything to the federal FDCPA?
Yes. In addition to the FDCPA, Nebraska requires collection agencies to be licensed and bonded, provides a 15% head-of-family garnishment cap instead of the federal 25%, and lets you challenge deceptive collection conduct under the Nebraska Consumer Protection Act and Uniform Deceptive Trade Practices Act.
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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