Missouri Debt Collection Laws: Recovery Strategy & Compliance Guide Released

This post was originally published on this site.

The newly released guide addresses the dual regulatory landscape that Missouri businesses must understand during the collections process, combining requirements from the federal Fair Debt Collection Practices Act (FDCPA) with state-specific statutes, including the Missouri Merchandising Practices Act. The material draws on the direct experience of the Southwest Recovery Services (SWRS) team, who specialize in managed debt collection services nationwide.

More details can be found at https://www.swrecovery.com/resources/blog/missouri-debt-collection-laws/

As the team explains, Missouri’s regulatory environment creates compliance challenges because debt collection operates under both federal and state oversight. The FDCPA applies to third-party debt collectors nationwide, primarily covering consumer debts such as personal loans, medical expenses, and credit card obligations while leaving commercial debt recovery largely outside its scope. Unlike many states, Missouri does not require state licensing for commercial collectors, which means businesses must rely on thorough knowledge of state statutes to ensure compliant practices.

The guide provides legal details that may directly impact recovery strategies, including Missouri’s statute of limitations, which varies by debt type. Businesses have five years to file lawsuits for oral contracts and credit card debt, while written contracts, such as medical bills, generally carry a ten-year limitation period. The clock begins when payments become due and restarts if debtors make payments before expiration.

Additionally, Missouri limits wage garnishment to the lesser of 25% of disposable earnings, 10% if the debtor heads a family, or the amount exceeding 30 times the federal minimum wage. As the guide highlights, these specific parameters are critical for businesses planning compliant collection efforts and understanding their legal timeframes for action.

Southwest Recovery Services brings clients over 20 years of specialized B2B commercial debt recovery experience, operating from a local office in St. Louis, Missouri. The company maintains a contingency-based model where clients pay between 15% and 40% only upon successful collection, aligning incentives with results. SWRS also adheres to FDCPA standards and all relevant state and local regulations, ensuring that recovery efforts remain compliant throughout the process.

The latest guide is available through Southwest Recovery Services’ website as part of the company’s commitment to helping businesses recover outstanding debts legally and efficiently. Missouri businesses can also consult directly with experienced professionals at the St. Louis office for tailored solutions. By combining accessible educational resources with hands-on support, SWRS positions itself as a partner for companies seeking to improve cash flow while maintaining full regulatory compliance and protecting their business relationships.

For more information, visit https://www.swrecovery.com/

Company: Southwest Recovery Services City: Addison Address: 16200 Addison Road Suite 260 Website: https://www.swrecovery.com/