Georgia Debt Collection Laws: Your Rights and Protections
Federal and state laws prohibit debt collectors from abusive practices in Georgia. Collectors can still garnish wages, charge interest, and seize assets within legal limits. You can stop harassment with cease-and-desist letters or eliminate debt through bankruptcy.
Get Free ConsultationUnder the Fair Debt Collection Practices Act (FDCPA), debt collection agencies cannot engage in unfair or deceptive practices. They cannot harass you or call at inconvenient times.
The FDCPA gives you strong protection in Georgia. But other laws also help defend your rights. You need to know what debt collectors can and cannot legally do.
Stop Georgia Collectors With Bankruptcy
Collectors garnishing your wages or freezing your bank account? Bankruptcy stops collections immediately and can discharge your debt. Get a free consultation to see if you qualify for Chapter 7 or Chapter 13.
Check If You QualifyWhat Debt Collectors in Georgia Can Do
Debt collectors must follow strict rules in Georgia. State and federal laws regulate their communication methods, calling times, and language. Still, they have powerful collection tools available.
If you get sued, you must respond immediately. Our partner Solo has helped 280,000 people respond to debt lawsuits and settle for less. They can make responding faster and less stressful.
Garnish Your Paycheck
Debt collectors can file a lawsuit to get a civil judgment. A court judgment allows them to take money from your paycheck through wage garnishment. They can only garnish part of your disposable income.
Your disposable income is what you earn after taxes and deductions. Georgia law limits how much collectors can take:
- Collectors can garnish up to 25% of your weekly disposable income
- Or they can take the amount exceeding 30 times the federal minimum wage
- They must choose whichever amount is less
- Currently, 30 times minimum wage equals $217.50
- If your disposable income falls below $217.50 weekly, collectors cannot garnish anything
Collectors need a court judgment before garnishing wages. Skipping your court hearing does not protect you. The collector wins a default judgment if you do not appear.
Freeze Your Bank Account or Take Your Property
Debt collectors with judgments can freeze your bank account. They can place liens on property you own. They can even repossess items like cars.
Bank Levies
After winning a civil judgment, collectors can ask your bank for money. But Georgia protects certain income types from garnishment:
- Unemployment benefits
- ERISA qualified retirement and pension benefits
- Child support payments
- Disability insurance benefits
- Other protected income sources
You must prove your money comes from exempt sources. Judges need verification before protecting your funds. You can protect exempt income by:
- Creating a separate bank account for protected income
- Cashing exempt checks instead of depositing them
Property Liens
Collectors can attach liens to your real estate or personal property after getting a judgment. They register the judgment with the court clerk in the county where your property sits.
For personal property liens, collectors register in your home county. Even if your boat stays in Gainesville, they file in Fulton County if you live in Atlanta.
Repossession
Collectors can repossess property for secured debts without a court order. Georgia allows self-help repossession. Collectors then sell the property to recover their money.
Add Interest Charges to Your Debt
Your debt grows during lawsuits through interest charges. Both pre-judgment and post-judgment interest can apply.
Prejudgment Interest Rates
Before getting a judgment, collectors continue charging interest. The maximum rate depends on your original contract with the creditor.
If you agreed to 12.9% interest on a credit card, collectors charge that rate while awaiting judgment. Without a contracted rate, Georgia law allows up to 7% interest.
Post-Judgment Interest Rates
After winning judgment, collectors charge either the contracted rate or the Federal Reserve prime rate plus 3%. Whichever rate applies, your debt continues growing.
FDCPA Protections for Georgia Consumers
The FDCPA restricts what debt collectors say and do. Major protections include:
- Collectors must identify themselves as debt collection agencies on first contact
- They must provide their contact information
- They must send verification notices within five days
- They cannot harass you with repeated calls, threats, profanity, or embarrassment
- They must stop contacting you if you request it in writing
- They must stop calling your workplace if you request it
- They cannot call before 8:00 a.m. or after 9:00 p.m. local time
- They cannot use deceptive or unfair practices
- They must contact your attorney directly if you have representation
The FDCPA does not cover contact from original creditors. Only third-party collectors must follow these rules.
Georgia State Laws Protecting Debtors
Georgia has passed additional laws to protect consumers. These laws work alongside the FDCPA.
Georgia Law Protects Certain Property
Georgia law prevents creditors from seizing exempt property. You can keep certain assets even with outstanding judgments.
The Georgia Industrial Loan Act (GILA)
GILA regulates debt collection for loans of $3,000 or less. It provides similar protections to the FDCPA. Collectors cannot threaten, harass, lie, or use unfair practices.
Additional GILA protections include:
- Most lenders need licenses to offer loans of $3,000 or less
- The law limits fees, late charges, and interest on existing debt
The Georgia Fair Business Practices Act (GFBPA)
The GFBPA prohibits unfair business practices. Collectors cannot make false statements about their services or other businesses.
Statute of Limitations on Debt
Debt collectors have deadlines to sue you in Georgia. After the statute of limitations expires, they lose their right to collect through court. Timelines vary by debt type:
- Credit cards: 6 years
- Written contracts: 6 years
- Oral contracts: 4 years
- Promissory notes: 4 years
Collectors may still try collecting on expired debt. The debt appears on your credit report for seven years, longer than the statute of limitations.
After winning a judgment, collectors have 20 years to collect.
How to Stop Calls From Debt Collectors
You can stop collector calls with a cease-and-desist letter. The letter reduces stress but does not erase debt. For complete debt relief, consider bankruptcy.
Cease-and-Desist Letters
Collectors must stop calling after receiving your written request. You can use a cease-and-desist letter template to create your request.
If calls continue, file a complaint with the CFPB or Georgia’s Attorney General. Remember that collectors can still sue you even when they cannot call.
Filing for Bankruptcy
Bankruptcy stops collector calls immediately. Federal law offers two main options: Chapter 7 and Chapter 13.
Chapter 7 bankruptcy discharges most debt quickly. You may lose non-exempt assets, which pay back certain creditors. Speak with a bankruptcy attorney for free to understand which assets you can keep.
Chapter 13 bankruptcy lets you keep assets. You make payments under a 3-5 year plan. Both options prevent civil judgments and wage garnishments.
Bankruptcy gives you debt relief and peace of mind. You can explore your options with professional guidance.
Where to Get Legal Help in Georgia
Finding an Attorney
Search the State Bar of Georgia’s statewide directory by practice area. Low-income families may qualify for free legal help from:
- Atlanta Legal Aid
- Georgia Legal Services Program
- Georgia Legal Aid
These organizations provide free assistance to qualifying residents.