Which state does law apply?

[mkdfghfg]

When a debt collection firm purchases a debt and attempts to collect, which state's fair debt collection laws apply?
Is it the state the debtor is living in, the state the debt was created in, or the state the collection agency is in?

Also when the debt collector files a collection lawsuit, which state should the suit be filed? Is it the state the debtor is living in, the state the debt was created in, or the state the collection agency is in?

 

[justalayman]

The FDCPA is federal so it applies in all states. Some states have their own version of the law as well. The law that applies in that case would be based on where the debtor is contacted (generally the state they live in)

Where a suit is initiated will depend on which state has jurisdiction over the matter but as when it comes to actuslly being able to prosecute the suit, they need to utilize a court that has personal jurisdiction over the debtor. The safe bet is suing in the debtors (current) home state although other states may have personal jurisdiction depending on all the facts.

 

[mkdfghfg]

follow up

Does the debt collector have to file a lawsuit in the state the debtor lives in, or can they file a lawsuit in their own state and serve the debtor?

 

[justalayman]

Does the debt collector have to file a lawsuit in the state the debtor lives in, or can they file a lawsuit in their own state and serve the debtor?

As i said, that would depend on whether the other state can extend jurisdiction to include the debtor in another state. Usually the creditors home state is irrelevant unless their home state also Happens to be a state the debtor lived in at the time the debt was incurred or it is the state the contract was entered into (in my area that is very common as i live near a state border) or the contract specifies the creditors state as where any issues must be handled

Once a judgment is entered, (if a state different than the debtors current home state) the judgment would have to be domesticated in the home state of the debtor to be able to take action against the debtor as far as collections goes.

 

[single317dad]

Some debtors have had success getting their cases moved to the creditor's home state (Delaware, most commonly). This may be irrelevant as it seems to answer the opposite question to the one OP was asking.