Louisiana B2B Debt Collection Rules
Louisiana is unique among US states — it is the only jurisdiction based on civil law tradition (derived from French and Spanish law) rather than common law. This affects how contracts are interpreted and how debts are collected. Louisiana's commercial economy spans energy, petrochemicals, shipping, and tourism.
Critical warning: Louisiana has one of the shortest prescription periods (statute of limitations) in the nation — only 3 years for commercial contracts under Civil Code Art. 3494. If you have unpaid B2B invoices in Louisiana, you must act within 3 years or the debt becomes unenforceable. Do not delay.
How Long You Have to Collect
Louisiana Civil Code — Liberative Prescription
Louisiana uses the term "liberative prescription" rather than "statute of limitations." The effect is the same: once the prescription period runs, the debt is no longer judicially enforceable.
| Contract Type | Time Limit | Code Section |
|---|---|---|
| Written contract | 3 years | CC Art. 3494 |
| Oral contract | 3 years | CC Art. 3494 |
| Open account (invoices) | 3 years | CC Art. 3494 |
| Account stated | 3 years | CC Art. 3494 |
| Promissory note | 5 years | CC Art. 3498 |
Critical: The 3-year prescription for commercial invoices and contracts is among the shortest in the US. Prescription runs from the day payment was due. Acknowledgment of the debt or a partial payment interrupts prescription and restarts the clock.
Who Needs a License
Louisiana Office of Financial Institutions (OFI)
Louisiana requires third-party debt collectors to be licensed by the Louisiana Office of Financial Institutions (OFI) under the Louisiana Collection Agency regulation.
- Third-party collectors must hold a Louisiana OFI Collection Agency license
- Original creditors collecting their own debts generally do not need a license
- License requires application, background check, bond, and OFI approval
- Annual renewal required
- Violations can result in license revocation, fines, and civil liability
How AgentCollect Handles This
- AgentCollect operates under its own Louisiana OFI license — you don't need to obtain one
- Our partnered attorneys are licensed and barred in Louisiana
- All communications include required disclosures
- Licensing status is verified and renewed annually
Laws That Apply to B2B Collections
Louisiana Civil Code — Contract Obligations
Unlike other US states, Louisiana contract law is governed by the Civil Code rather than common law. Key differences affect commercial debt collection.
- Contracts interpreted under Civil Code Articles 1983–2057
- Good faith obligation applies to performance and enforcement of all contracts
- Extinctive prescription (time bar) is strictly applied by Louisiana courts
- Interruption of prescription requires formal demand, acknowledgment, or partial payment
Louisiana Unfair Trade Practices Act
The Louisiana Unfair Trade Practices and Consumer Protection Law (La. R.S. 51:1401 et seq.) applies to commercial practices as well as consumer transactions.
- No unfair or deceptive acts or practices in trade or commerce
- Can apply to B2B deceptive collection practices
- Private right of action with attorney fees and treble damages in egregious cases
- Louisiana AG can investigate and prosecute commercial deception
Automatic Louisiana Compliance
| Requirement | How AgentCollect Handles It |
|---|---|
| Contact hours (8am–9pm CT) | AI agents auto-detect timezone from area code. Never calls outside permitted hours. |
| Validation notice | Automatically sent within 30 days of first contact with all required disclosures. |
| 3-year prescription period | Louisiana accounts flagged at 2.5 years — critical early warning before the 3-year SOL expires. |
| Louisiana OFI licensing | AgentCollect holds its own Louisiana license. Clients don't need to obtain one. |
| Cease-and-desist | Immediately stops all contact. Account moved to legal review queue. |
| Civil Code compliance | Louisiana-specific Civil Code rules applied to all account handling in the state. |
Louisiana B2B Debt Collection FAQ
Collecting B2B debts in Louisiana?
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