Understanding Georgia Debt Collection Laws

Collecting a debt in Georgia requires a clear understanding of the state’s specific legal rules. Whether you're an agency managing thousands of accounts, a law firm overseeing recovery cases, or a credit issuer navigating compliance, Georgia’s debt collection laws guide how communication and recovery should be handled. These rules establish the limits on what you can say, when you can reach out, and what steps are legally permissible.

Missing these details can lead to compliance issues, strained consumer relationships, or even lawsuits. However, with the right knowledge, your team can mitigate risks, communicate more effectively, and recover more efficiently. 

This blog breaks down the core laws and timelines that shape collections in Georgia so you can stay on track, protect your business, and improve resolution outcomes.

TLDR

• Know the governing laws including the FDCPA, Georgia Industrial Loan Act, and Fair Business Practices Act.
• Respect time limits with a 4–6 year statute of limitations depending on debt type.
• Ensure consumer rights like dispute windows, no harassment, and proper disclosure are protected.
• Follow proper legal processes before garnishment or judgment enforcement.
• Avoid penalties by documenting every interaction, using clear communication, and complying with state rules.

Key Debt Collection Laws That Apply in Georgia

Debt collection in Georgia is governed by a combination of federal laws, like the FDCPA, and specific state statutes that affect how agencies operate. Knowing the exact legal provisions can help you stay compliant while improving resolution strategies and reducing liability.

Here are the major laws and relevant sections to be aware of:

1. Georgia Industrial Loan Act – O.C.G.A. § 7-3-1 through § 7-3-29

• Regulates small consumer loans under $3,000, including collection activity by licensed lenders.
• Section 7-3-14 restricts misleading collection tactics and mandates fair disclosure of loan terms.
• Section 7-3-22 allows the state to revoke or suspend licenses for unfair collection practices.

2. Georgia Fair Business Practices Act – O.C.G.A. § 10-1-390 et seq.

• Section 10-1-393 prohibits unfair or deceptive practices in consumer transactions, which may include misleading debt collection tactics.
• This law allows consumers to file complaints with the Georgia Attorney General and pursue private legal action.
• Collectors can face injunctions, restitution, and penalties for violations.

3. Georgia Statute of Limitations – O.C.G.A. § 9-3-24 and § 9-3-25

• Section 9-3-24: Sets a 6-year limit on written contracts, which includes most loan and credit agreements.
• Section 9-3-25: Sets a 4-year limit on oral contracts and open accounts like credit cards.
• Attempting to collect or sue on time-barred debt risks dismissal and potential legal backlash.

4. Federal Debt Collection Practices – FDCPA § 805–812 (15 U.S.C. §§ 1692c–1692j)

• Applies nationwide but is enforced by Georgia courts.
• Section 1692g (Validation of Debts): Requires collectors to send written notice within 5 days of first contact, informing consumers of their right to dispute.
• Section 1692d–f prohibits harassment, deceptive practices, and unfair conduct during collection.

With the legal groundwork in place, it's also important to understand how Georgia law protects consumers during the collection process. Knowing these rights helps prevent disputes and build compliant workflows.

Rights of Debtors Under Georgia Law

Debtors in Georgia are protected by both federal and state laws that outline how and when collectors can contact them. These protections are meant to ensure that all collection practices remain lawful, respectful, and transparent.

Here are the key rights every collector should be aware of:

1. Protections Afforded to Debtors

• Freedom from harassment: Collectors must avoid using threatening, aggressive, or profane language. Both the FDCPA (§ 1692d) and Georgia’s Fair Business Practices Act (O.C.G.A. § 10-1-393) make it illegal to harass consumers during debt collection.
• Truthful communication: You cannot misrepresent the amount owed, the legal consequences of non-payment, or your identity as a collector or attorney.
• Privacy safeguards: Debt details cannot be shared with third parties. Only the consumer, their attorney, or authorized individuals may be contacted.

2. Right to Dispute a Debt

• Consumers have 30 days from the date of the first written notice to dispute the debt in writing under FDCPA § 1692g.
• Once disputed, collection activity must stop until you verify the debt and provide written documentation.
• Ignoring a valid dispute can lead to legal consequences and erode trust.

3. Communication Restrictions for Collectors

• Time-of-day limits: Calls are only allowed between 8 a.m. and 9 p.m. local time, unless the consumer agrees to a different schedule.
• Requests to stop contact: If the consumer sends a written request to stop communication, you must comply except in limited legal scenarios.
• No workplace contact: You cannot call a consumer at work if you are aware that their employer prohibits it.

Just as consumers have protections, debt collectors also have responsibilities. Here’s what Georgia law expects from agencies, law firms, and credit issuers handling collections.

Obligations and Restrictions on Debt Collectors in Georgia

Debt collectors in Georgia are expected to follow specific rules that ensure consumers are treated fairly and respectfully. These obligations are not just legal requirements; they are essential to maintaining credibility, minimizing legal risk, and creating a more effective recovery process.

Here is a breakdown of what collectors can and cannot do under state and federal law:

1. Permitted and Prohibited Practices for Debt Collectors

Permitted actions include:

• Sending written notices that outline the balance due, the creditor's name, and the right to dispute
• Contacting consumers by phone, email, or mail during allowed hours
• Offering payment plans or settlement terms based on the consumer’s situation

Prohibited actions include:

• Using threats, profane language, or excessive contact to harass (FDCPA Section 806)
• Misrepresenting yourself as an attorney, government agent, or law enforcement officer
• Contacting third parties about the debt, except for limited location information, and only once per person

2. Requirements for Transparency and Accuracy

• Provide a written validation notice within five days of first contact, as per FDCPA Section 809
• Pause all collection efforts if a consumer disputes the debt in writing within 30 days and provide verification
• Clearly identify themselves and the purpose of the communication in each interaction
• Disclose that the communication is part of an attempt to collect a debt

Documenting all communication and updates to the account ensures that records are accurate and compliant.

3. Handling Harassment and Abusive Practices

Collectors must avoid:

• Repeated calls that could be viewed as harassment
• Failing to respect communication preferences, including requests to stop calls or switch to written communication
• Using deceptive tactics or pressuring consumers beyond what the law permits

Tratta’s Customization & Flexibility options let you adapt your workflows to Georgia’s requirements and specific account needs. Create rules that work for your team and still meet strict regulatory standards.

If recovery efforts through communication fail, legal action may follow. However, before proceeding with judgments or wage garnishment, it's essential to follow Georgia’s specific legal steps and limits.

Judgment and Wage Garnishment Procedures in Georgia

Once standard collection efforts fail, creditors may turn to legal action to recover the debt. Georgia law outlines a clear path for obtaining a judgment and initiating wage garnishment, but the process is subject to strict requirements that collectors must follow.

1. Steps to Obtain a Judgment

Before wage garnishment is allowed, a creditor must first secure a court judgment confirming the debt is valid and unpaid.

Here’s how that typically works in Georgia:

• File a lawsuit in the appropriate court, usually in the county where the debtor resides.
• Serve legal notice to the debtor, giving them a chance to respond or contest the claim.
• Attend a court hearing where both parties can present evidence.
• Receive a judgment if the court rules in favor of the creditor.

Once granted, a judgment is valid for 7 years in Georgia and can be renewed if needed (O.C.G.A. § 9-12-60).

2. Wage Garnishment Limitations

After obtaining a judgment, creditors can file for a garnishment order to collect from the debtor’s wages.

Important wage garnishment limits in Georgia include:

• Garnishment cannot exceed 25% of the debtor’s disposable income or the amount by which weekly income exceeds 30 times the federal minimum wage, whichever is less (per the Federal Consumer Credit Protection Act).
• The court must approve garnishment, and a copy of the order must be sent to the employer and the debtor.
• Certain types of income, such as Social Security and veterans’ benefits, are exempt from garnishment.

3. Debtor Rights During Garnishment

Even after garnishment starts, debtors have legal protections:

• Right to be notified of the garnishment action and the judgment behind it
• Right to file a claim of exemption if the funds being garnished are protected or if the garnishment creates financial hardship
• Right to request a hearing to contest the garnishment in court

Even strong documentation won’t help if a case is time-barred. That’s why understanding the statute of limitations for different types of debt in Georgia is critical for planning timely action.

Also Read: Collecting and Enforcing Judgment Debt in New York State

Statute of Limitations on Debt Collection

In Georgia, the statute of limitations determines the timeframe within which a creditor must file a lawsuit to collect on a debt. Once the legal time limit passes, the debt still exists, but court enforcement is no longer an option.

1. Time Limits for Different Types of Debt

Different categories of debt have different timeframes under Georgia law. These timelines typically begin from the date of the last payment, default, or other breach of contract.

Knowing these distinctions ensures your team isn’t pursuing lawsuits on expired accounts, which could result in case dismissal and regulatory risk.

2. Implications for Creditors and Debtors

• For creditors: Once a debt becomes time-barred, initiating or threatening legal action is not allowed. Attempting to do so could violate the Fair Debt Collection Practices Act (FDCPA) and state consumer protection laws.
• For debtors: While they are not legally obligated to pay a time-barred debt through the courts, voluntary payments are still allowed. However, consumers should be aware that certain actions may restart the clock.

3. Tolling and Restarting the Statute

Some events may pause (toll) or restart the limitation period, giving collectors a renewed window to take legal action.

What can toll the statute:

• The debtor temporarily leaves the state
• The debtor is legally incapacitated (e.g., mental illness, minor)

What can restart the statute:

• A partial payment made toward the debt
• A written acknowledgment of the debt
• A new written promise to pay

Failing to complete a compliance step can result in severe consequences. Here’s what non-compliance could mean for your agency or firm under Georgia and federal law.

Also Read: Crafting Collection Emails for Effective Debt Recovery

Penalties for Violation of Georgia Debt Collection Laws

Failing to comply with Georgia’s debt collection laws can result in severe consequences for agencies, law firms, and creditors. These penalties aren’t just financial; they can damage your reputation, expose your company to litigation, and jeopardize future recovery efforts. That’s why staying aligned with both state and federal requirements is a critical part of a compliant collections strategy.

1. Consequences for Debt Collectors Violating Laws

Debt collectors who violate Georgia or federal collection laws can face the following penalties:

• Civil lawsuits filed by consumers for damages resulting from harassment, misrepresentation, or unlawful contact
• Injunctions or restraining orders that restrict or halt collection activities
• Fines and penalties imposed by state agencies or federal regulators
• License suspension or revocation if the agency is found in breach of the Georgia Industrial Loan Act or other licensing rules (O.C.G.A. § 7-3-29)

Common violations that lead to penalties include:

• Contacting consumers after a written cease-and-desist
• Threatening legal action without intent to follow through
• Misstating the balance due or creditor name
• Contacting consumers at inconvenient hours (outside 8 AM to 9 PM)

2. Legal Remedies Available to Debtors

Consumers in Georgia have several legal tools they can use if they believe a collector has overstepped:

• Filing complaints with the Georgia Department of Law’s Consumer Protection Division
• Seeking statutory damages under the federal Fair Debt Collection Practices Act (FDCPA) — up to $1,000 per violation
• Suing for actual damages if they’ve experienced harm due to non-compliant practices, such as emotional distress or lost wages

Collectors who violate these rights can be held liable not just for damages but also for the debtor’s attorney fees and court costs.

3. Role of Regulatory Bodies in Enforcement

Several regulatory agencies oversee debt collection practices in Georgia:

• Georgia Department of Law: Investigates consumer complaints and takes enforcement action against agencies that engage in unfair or deceptive collection practices.
• Federal Trade Commission (FTC): Enforces the FDCPA and takes action against larger agencies or widespread violations.
• Consumer Financial Protection Bureau (CFPB): Accepts complaints, audits collectors, and may impose civil penalties or require restitution to affected consumers.

Use Tratta’s Reporting and Analytics to track contact activity, dispute rates, and team performance in one dashboard. Get the insights you need to protect your business and drive smarter recovery decisions.

Rather than waiting for issues to surface, proactive compliance is always the better path. Utilize these best practices to establish efficient, risk-aware operations that comply with Georgia’s requirements.

Tips for Agencies to Comply With Georgia Debt Collection Laws

A consistent, proactive compliance approach can help agencies recover more while avoiding penalties. Georgia’s laws have clear expectations around communication, documentation, and consumer rights, and staying ahead of them is easier when your internal practices are aligned.

Here are key tips to strengthen your compliance strategy:

1. Document Everything in Real Time

• Log all communications with date and time stamps, calls, emails, voicemails, and letters
• Maintain payment records and consent documentation
• Keep these records securely stored for at least 3–5 years, even after an account is closed

2. Train Your Staff on Georgia-Specific Rules

• Ensure agents understand local call-time windows, validation notice content, and disclosure requirements
• Conduct refreshers when laws change, or new staff join
• Use real-world call examples to reinforce compliant behavior

3. Use Consumer-Friendly Language in All Communication

• Avoid technical or legal jargon
• Focus on clarity, accuracy, and tone, especially in first-touch messages
• Ensure email and voicemail language doesn’t imply legal action unless it’s been approved

4. Monitor Communication Timelines Carefully

• Watch for deadlines like the 5-day window for sending validation notices (per FDCPA)
• Track time limits for lawsuits based on the type of debt (see Georgia’s statute of limitations)
• Pause communication when a dispute is filed until verification is sent

5. Give Consumers Control Over Payment Options

• Provide self-service portals where consumers can select dates, amounts, or payment plans
• Offer multilingual IVR options to reduce misunderstandings
• Keep opt-out and consent-update paths easy to find and use

Explore Tratta’s Consumer Self-Service Platform to enable consumers to manage payments on their own terms. It’s a faster, more compliant way to encourage resolution, without involving your agents every step of the way.

Conclusion

Georgia’s debt collection laws create a structured environment for fair, transparent, and respectful recovery practices. From communication rules and consumer rights to statutes of limitations and garnishment procedures, each element influences how agencies, law firms, and credit issuers operate in the state.

For those involved in collections, staying aligned with these laws is crucial for protecting your team, improving resolution rates, and fostering stronger consumer relationships. Regular compliance reviews, up-to-date staff training, and smart automation can make that much easier.

Want to streamline your Georgia compliance strategy? Book a free demo to see how Tratta helps you track statutes, automate disclosures, and manage collections more confidently.

 FAQs 

1. What debts are covered under Georgia's collection laws?
Most consumer debts, such as loans, credit cards, and medical bill,s fall under both Georgia’s state laws and federal FDCPA rules.

2. How long can a collector legally pursue a debt in Georgia?
Depending on the type, the statute of limitations ranges from 4 to 6 years. For example, written contracts have a 6-year limit, while open accounts like credit cards have 4 years.

3. Is it legal to garnish wages in Georgia?
Yes, but only after securing a court judgment. Garnishment is limited to 25% of disposable income or a specific wage calculation, whichever is less.

4. Can a debtor stop communication from a collector?
Yes, debtors can request in writing to stop contact. After that, collectors may only reach out in specific legal circumstances.

5. What happens if a collector violates Georgia law?
Collectors may face lawsuits, fines, license suspension, or enforcement action from agencies like the Georgia Attorney General, FTC, or CFPB.