Georgia Debt Collection Laws: What Collectors Can and Can't Do

Georgia collectors operate under two legal frameworks: the state's Fair Business Practices Act and the federal Fair Debt Collection Practices Act. Both give you concrete protections. If a collector violates these laws, you can fight back—and in some cases, collect damages.

What Georgia's Fair Business Practices Act Prohibits

Georgia's Fair Business Practices Act (O.C.G.A. § 10-1-391) targets deceptive collection tactics. Under this law, collectors cannot:

• Impersonate law enforcement or government officials. If someone claims to be a sheriff or federal agent, hang up and report them.
• Hide their identity. Every letter and call must clearly state who's contacting you and why.
• Use false pretenses to access your credit report. Collectors can't lie to credit bureaus to pull your file.

These rules apply to third-party collection agencies,companies hired to collect debts they don't own. Original creditors (like your bank or hospital) face fewer restrictions, but they still can't commit outright fraud.

Federal Protections Under the FDCPA

The Fair Debt Collection Practices Act adds nationwide protections. Collectors in Georgia cannot:

• Call you at work if your employer prohibits it. Tell them once,in writing,that your job bans personal calls. If they keep calling, you have a claim.
• Discuss your debt with third parties. They can contact your employer only to verify employment, and they can't mention the debt. Telling your boss, coworker, or neighbor about what you owe violates federal law.
• Contact you after you send a cease letter. Once you mail a written request to stop contact, collectors can only reach out to confirm they're stopping or to notify you of specific legal action (like filing a lawsuit).
• Use obscene, abusive, or threatening language. Yelling, cursing, or threatening violence is illegal. So is threatening legal action they don't intend to take.

Collectors can call between 8 a.m. And 9 p.m. Your local time. Anything outside that window is a violation unless you gave permission.

How Long Can Collectors Sue You in Georgia?

Georgia's statute of limitations sets deadlines for filing lawsuits. Once the clock runs out, the debt becomes "time-barred." Collectors can still ask you to pay, but they can't sue you in court.

The clock starts when you miss your first payment or break the contract,not when the collector contacts you. If a collector sues you on a time-barred debt, file an Answer that raises the statute of limitations as an affirmative defense. Courts will typically dismiss the case.

One trap: making a payment or promising to pay can restart the clock in some cases. If you're close to the deadline, talk to a lawyer before acknowledging the debt.

What to Do If a Collector Breaks the Rules

Document everything. Save voicemails, letters, and call logs. Note dates, times, and what was said. If a collector violates the FDCPA or Georgia's FBPA, you can:

• File a complaint with the Georgia Department of Law's Consumer Protection Division. They investigate illegal collection practices.
• Report the violation to the Consumer Financial Protection Bureau (CFPB). The CFPB tracks patterns and can take enforcement action against repeat offenders.
• Sue the collector. Under the FDCPA, you can recover up to $1,000 in statutory damages per violation, plus actual damages (like lost wages or emotional distress) and attorney fees. Many consumer lawyers take these cases on contingency.

Even if you owe the debt, illegal collection tactics give you leverage. Some borrowers use violations to negotiate settlements or dismissals.

How to Validate a Debt

Within five days of first contacting you, collectors must send a written validation notice. This notice lists the debt amount, the original creditor, and your right to dispute it. If the debt isn't yours,or the amount is wrong,you have 30 days to send a dispute letter.

Send your dispute by certified mail with return receipt. The collector must stop collection efforts until they mail you verification (like a copy of the original contract or account statements). If they can't verify it, they're supposed to drop the matter.

Validation is your first line of defense. Roughly 30% of credit reports contain errors, and debt buyers often lack complete documentation.

What Happens If You Get Sued

If a collector files a lawsuit, you'll receive a summons and complaint. Georgia gives you 30 days to file an Answer with the court. Miss that deadline and the collector gets a default judgment,meaning they win automatically.

Your Answer should raise every defense you have:

• Statute of limitations. If the debt is time-barred, say so.
• Lack of standing. If the collector can't prove they own the debt, the case should be dismissed.
• Incorrect amount. Challenge the math. Collectors often add phantom fees or interest.

If the collector gets a judgment, they can garnish up to 25% of your disposable income or freeze your bank account (after a court hearing). Georgia law protects Social Security, unemployment benefits, and certain retirement funds from garnishment.

If you're facing a lawsuit and need help filing bankruptcy to stop it, start here. Bankruptcy triggers an automatic stay that halts lawsuits and garnishments immediately.

When Bankruptcy Makes Sense

If you're juggling multiple collectors, wage garnishment, or debts you can't pay, bankruptcy might be your best option. Chapter 7 wipes out most unsecured debts (credit cards, medical bills, personal loans) in about four months. Chapter 13 creates a 3-5 year repayment plan and can stop foreclosure or car repossession.

Georgia's bankruptcy exemptions let you protect equity in your home (up to $21,500 for individuals, $43,000 for married couples), one vehicle, and basic household goods. If you're overwhelmed, use our free bankruptcy screener to see if you qualify.

Dealing with Debt Buyers

Original creditors often sell old debts for pennies on the dollar. Debt buyers,companies that specialize in buying and collecting charged-off accounts,own huge portfolios and rely on volume. They're counting on you not to respond.

Debt buyers are subject to the same laws as other collectors. Demand validation. If they can't produce the original contract or a complete chain of ownership, you may be able to get the lawsuit dismissed. Georgia courts require collectors to prove they have standing,meaning they own the debt and have the right to sue.

What Collectors Can Do Legally

Collectors have legitimate tools. They can:

• Call you (within the hours and frequency limits)
• Send letters and emails
• Report the debt to credit bureaus
• Sue you in court
• Garnish wages or bank accounts after winning a judgment

They can't threaten what they can't or won't do. If a collector says they'll have you arrested or seize your property without a court order, that's illegal. Arrest for debt doesn't exist in Georgia (or anywhere in the U.S.).

Negotiate From a Position of Strength

If you want to settle, wait for the collector to make the first offer. Start at 30-40% of the balance and work up from there. Get every settlement agreement in writing before you pay a dime. The agreement should state that payment satisfies the debt in full and that the collector will report it as settled to the credit bureaus.

Never give collectors direct access to your bank account. Pay by money order or cashier's check so you control the timing and amount.

Know When to Get Help

If collectors are violating the law, threatening legal action, or you're already being sued, talk to a consumer rights attorney or bankruptcy lawyer. Many offer free consultations. Georgia has a strong consumer protection bar, and if a collector broke the FDCPA, your attorney fees get paid by the other side if you win.