Consumer debt consists of personal debts for goods purchased for personal or household consumption—as opposed to debts incurred for the operation of a business. Common examples of consumer debt include (1) credit card debt; (2) student loans; (3) home mortgage loans; (4) car or auto loans; (5) payday loans; (6) medical debts; and (7) unpaid utility and telephone bills.
In Missouri, consumer debt is regulated by both state statutes and federal laws. Credit card debt, student loans, home mortgage loans, auto loans, payday loans, medical debts, and unpaid utility and telephone bills are all considered consumer debts when they are for personal or household use. The Missouri Division of Finance oversees the regulation of consumer credit, including payday loans, and ensures that lenders comply with state laws such as the Missouri Consumer Credit Laws. The state follows the federal Fair Debt Collection Practices Act (FDCPA), which protects consumers from abusive debt collection practices. Additionally, Missouri has a statute of limitations on debt collection, which limits the time frame in which a creditor can sue a debtor to collect a debt. For example, the statute of limitations for written contracts, such as credit card agreements, is typically five years. It's important for consumers to be aware of their rights and obligations regarding debt, and to understand that lenders and debt collectors must adhere to these regulations when attempting to collect on debts.