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Georgia's debt collection laws combine federal protections, like the Fair Debt Collection Practices Act (FDCPA), with state-specific rules under the Georgia Installment Loan Act (GILA) and the Georgia Fair Business Practices Act (FBPA). These regulations aim to protect consumers while outlining strict requirements for collectors. Key points include:
Understanding these laws is critical for both consumers and collectors. Violations can result in lawsuits, damages, and severe legal consequences.
Federal vs Georgia Debt Collection Laws Comparison Chart
The Fair Debt Collection Practices Act (FDCPA) establishes the nationwide rules for debt collection. It specifically applies to third-party debt collectors and attorneys, leaving out creditors collecting their own debts. The FDCPA prohibits harassment, false statements, and unfair methods, while limiting collection calls to between 8:00 a.m. and 9:00 p.m. in the debtor's local time zone. If collectors violate these rules, consumers can sue for actual damages and receive up to $1,000 individually, or in class actions, the lesser of $500,000 or 1% of the collector's net worth.
Federal law allows states to impose stricter consumer protections alongside the FDCPA. As noted in the Act:
"For the purpose of this section, a State law is not inconsistent with this subchapter if the protection such law affords any consumer is greater than the protection provided by this subchapter".
This framework means federal and state laws often work together, with states like Georgia adding their own rules to enhance consumer protections.
While Georgia uses the FDCPA as its foundation, it introduces additional safeguards through the Georgia Installment Loan Act (GILA) and the Georgia Fair Business Practices Act (FBPA). GILA focuses on regulating lenders and their agents for loans of $3,000 or less with terms of 36 months or fewer, addressing areas the FDCPA does not cover.
Georgia law also redefines "unreasonable hours" for debt collection, banning calls or visits between 10:00 p.m. and 5:00 a.m.. It further prohibits actions that publicly humiliate or degrade borrowers. Additionally, Georgia allows "self-help" repossession, enabling creditors to reclaim collateral, such as vehicles, without court approval, as long as they avoid trespassing or disturbing the peace. Banks in the state can also use a "right of setoff", withdrawing money directly from a debtor's account to cover unpaid loans.
Importantly, any violation of the FDCPA automatically breaches the Georgia FBPA, giving debtors the right to sue for actual damages and, in cases of intentional violations, recover up to three times the damages. For GILA breaches, consumers can recover twice the interest and loan fees paid, with a minimum recovery of $100. Georgia residents also benefit from two free credit reports annually from each major credit bureau, compared to the federal allowance of one.
| Feature | Federal FDCPA | Georgia State Law (GILA) |
|---|---|---|
| Primary Target | Third-party debt collectors | Lenders of loans ≤ $3,000 |
| Prohibited Hours | 9:00 p.m. to 8:00 a.m. | 10:00 p.m. to 5:00 a.m. |
| Statutory Damages | Up to $1,000 | 2x interest/fees paid (min. $100) |
| Free Credit Reports | 1 per year | 2 per year |
| Key Prohibitions | Harassment, false claims, unfair practices | Public ridicule and trespass |
Georgia takes a different route when it comes to licensing for debt collection. Unlike many states, general debt collection agencies and debt buyers are not required to have a state license to operate. The Georgia Department of Banking and Finance (DBF) clearly outlines this in its guidance:
"The Department does NOT regulate collection agencies, debt collectors, or other entities or individuals collecting debts."
- Georgia Department of Banking and Finance
However, if you’re a lender handling installment loans of $3,000 or less with terms of 36 months and 15 days or shorter, you must obtain a GILA (Georgia Industrial Loan Act) license. This applies whether your primary role is lending or debt collection - what matters is the loan amount and term.
Certain groups are exempt from GILA licensing, such as banks, trust companies, credit unions, pawnbrokers, and institutions providing student loans. Additionally, loans with a simple interest rate of 8% per year or less do not require a license. Operating without the proper license is a serious offense in Georgia; knowingly issuing installment loans without authorization is considered a felony.
Licensed installment lenders also have a duty to ensure that any third-party debt collectors they work with follow all relevant laws. As stated in Ga. Comp. R. & Regs. 80-14-5-.05:
"Every licensee shall be presumed to know that any employee or agent of the licensee, which includes non-employee debt collectors utilized by the licensee, will be acting for and on behalf of the licensee in connection with the collection of any debt allegedly owed the licensee."
- Ga. Comp. R. & Regs. 80-14-5-.05
Now, let’s break down the steps to obtain this required license.
To operate legally under GILA, you’ll need to complete a specific licensing process overseen by the Industrial Loan Commissioner at the Georgia Department of Banking and Finance. Here’s what you need to do:
The Commissioner will review your application and conduct an investigation into your financial responsibility, character, and overall fitness to ensure public trust in your business. The entire process takes up to 60 days, so make sure to file your application at least two months before you plan to start operations.
Once your license is approved, it will expire on December 31 of the same year. To keep it active, you’ll need to pay a $500 renewal fee by December 20 annually. You’re also required to display the license prominently at your place of business and maintain your records for at least four years after the final entry. Additionally, licensed entities must pay a 3% tax on the total interest collected from loans.
Staying compliant with these licensing rules is essential for lawful debt collection activities in Georgia. To confirm whether an installment lender is authorized to operate, you can check the NMLS Consumer Access website. If you suspect someone is issuing installment loans of $3,000 or less without the proper license, report them to the Georgia Department of Banking and Finance at dbfgila@dbf.state.ga.us.
Knowing the statute of limitations is crucial for anyone dealing with debt collection, whether you're pursuing unpaid debts or defending against collection efforts. This legal timeframe sets a deadline for creditors to file lawsuits to recover debts. Once this period expires, the debt becomes "time-barred." While creditors can still try to collect through calls or letters, they lose the ability to use the courts to force payment.
The timeline typically starts from the date of the last payment or when the account initially becomes delinquent. However, certain actions can reset the clock. For instance, making a partial payment, signing a written promise to pay, or agreeing to a payment plan will restart the statute of limitations. The Georgia Attorney General's Consumer Protection Division emphasizes this point:
"Anytime you take an action with an account, the statute of limitations is restarted. Making a payment, making a promise of payment, entering a payment agreement, or making a charge using the account can restart the statute of limitations on an account."
It’s important to note that the statute of limitations doesn’t automatically prevent a lawsuit. If a creditor files a claim after the time limit, you must actively raise this defense in court. Ignoring the lawsuit could result in a default judgment, which is enforceable for seven years and can lead to wage garnishment or bank levies. Below, we’ll break down how these rules apply to different types of debt.
In Georgia, debts based on written agreements have a six-year statute of limitations, as outlined in O.C.G.A. § 9-3-24. This includes signed loan agreements, promissory notes, and most business contracts where the terms are documented.
Credit card debt, though technically classified as "open accounts" under O.C.G.A. § 9-3-25, is treated differently. Thanks to the court decision in Hill v. American Express, credit card agreements are considered written contracts, giving them the same six-year limit. The Georgia Attorney General’s office confirms:
"Credit card debt, for instance, has a statute of limitations of six years in Georgia. Even after the statute of limitations time period has run out on a debt, however, debt collectors may still try to collect."
This distinction is significant. A six-year limit instead of four years could mean the difference between a valid lawsuit and a time-barred claim. Promissory notes, which are signed documents specifying a loan amount, also fall under the six-year rule.
For verbal agreements without written documentation, Georgia law sets a four-year statute of limitations. This applies to handshake deals, verbal loans, and any informal debt arrangements.
Similarly, open accounts - like revolving credit or ongoing business accounts - are also subject to a four-year limit under O.C.G.A. § 9-3-25. However, as noted earlier, credit cards are an exception due to the Hill v. American Express ruling, which places them in the six-year category.
Here’s a quick overview of these timeframes and their legal bases:
| Debt Type | Statute of Limitations | Legal Basis |
|---|---|---|
| Written Contracts | 6 years | O.C.G.A. § 9-3-24 |
| Credit Card Debt | 6 years | Treated as written contracts per Hill v. American Express |
| Promissory Notes | 6 years | Signed notes for specific amounts |
| Oral Contracts | 4 years | Verbal agreements |
| Open Accounts | 4 years | O.C.G.A. § 9-3-25 |
| Domestic Judgments | 7 years | Can be revived for 3 years after dormancy |
| Foreign Judgments | 5 years | Judgments from other states |
| Contracts Under Seal | 20 years | Specialized formal written agreements |
These time limits are critical for both creditors and debtors to understand, as they shape the legal strategies for debt collection and defense.
In some situations, the statute of limitations can be paused or "tolled." For example, if a debtor leaves Georgia, the clock may stop until they return or can be properly served with legal papers. Additionally, in cases involving fraud, the statute doesn’t begin until the fraud is discovered.
Debt collectors in Georgia must follow specific rules that separate acceptable practices from actions considered harassment. These guidelines are designed to protect consumers while allowing legitimate debt collection efforts.
Debt collectors are permitted to reach out to debtors through telephone, mail, email, fax, telegram, or in-person visits. The Georgia Attorney General's Consumer Protection Division clarifies:
"A debt collector may contact you directly in person, or indirectly, such as by mail, telephone, telegram, e-mail or fax."
Federal law, under the FDCPA, specifies that collectors can only call between 8:00 a.m. and 9:00 p.m. local time. For smaller loans, such as installment loans of $3,000 or less, Georgia's Installment Loan Act extends the permissible hours to 5:00 a.m. to 10:00 p.m.. However, calls on Sundays and holidays are entirely prohibited under Georgia law.
Federal rules also limit the frequency of calls, prohibiting more than seven calls in a seven-day period or any calls within seven days after a prior conversation.
Collectors may contact specific individuals connected to the debtor, such as a spouse, parents or guardians (if the debtor is a minor), estate executors, or cosigners, to discuss the debt. Contact with other third parties is allowed only to gather location information, such as the debtor's address, phone number, or workplace. Additionally, within five days of the first contact, collectors must provide a written validation notice detailing the debt amount, the original creditor's name, and steps for disputing the debt.
If a debtor's employer prohibits personal calls, the debtor should notify the collector. Once informed, the collector is legally required to stop workplace calls. Debtors can also request that collectors avoid contacting them at inconvenient times or locations, and these requests must be respected.
While these practices are allowed, they are tightly regulated to prevent misuse or abuse.
Georgia law and the FDCPA strictly ban abusive or deceptive behaviors by debt collectors. They are prohibited from using threats, violence, obscene language, or any tactics meant to intimidate or demean debtors. According to the Georgia Attorney General's Consumer Protection Division:
"Debt collectors may not use or threaten to use violence or criminal means to harm you, your reputation or your property."
Collectors cannot repeatedly or continuously call with the intent to annoy or harass. Publicly shaming a debtor, such as ridiculing them in front of neighbors or coworkers, is also forbidden.
Misrepresentation is another major violation. Debt collectors are not allowed to falsely claim that a debtor has committed a crime or will face arrest or imprisonment for nonpayment. The Georgia Attorney General's office warns:
"A debt collector cannot pretend to be anyone except a debt collector."
This means they cannot impersonate law enforcement, attorneys, or government officials. For example, in 2020, the FTC took action against Critical Resolution Mediation LLC, an Atlanta-based company whose collectors falsely posed as law enforcement and threatened consumers with arrest.
Other illegal practices include using documents that mimic official legal forms to deceive debtors, sending letters in envelopes that reveal the sender is a debt collection agency, or notifying debtors via postcards.
Georgia's Installment Loan Act explicitly states:
"No licensee or employee or agent thereof shall willfully use any unreasonable collection tactics."
This includes actions that cause physical harm or injury to the debtor or their family, as well as forcible trespass on a debtor's property without proper legal authority.
If a collector violates the FDCPA, consumers can seek statutory damages of up to $1,000, along with compensation for actual losses, attorney fees, and court costs. Under Georgia's Installment Loan Act, borrowers who win a lawsuit may recover twice the amount of interest and fees paid, with a minimum recovery of $100.
Georgia has a clear process for handling wage garnishment, ensuring creditors and debtors follow specific steps when enforcing judgments.
Before garnishing wages, creditors must take legal action by suing the debtor and obtaining a money judgment. Once the judgment is secured, they can file an affidavit of garnishment with the court. The court then issues a summons of garnishment, notifying both the debtor and their employer. This summons also outlines the rights to file objections or claim exemptions, which must be done within 20 days after the employer responds.
Employers are required to withhold a portion of the debtor's disposable income and send those funds directly to the creditor or the court. If the debtor disputes the garnishment or claims exemptions, the court is obligated to schedule a hearing within 10 days. It's important to note that wage garnishment applies only to employees. Independent contractors and freelancers are not subject to this process under Georgia law.
Once the garnishment order is in effect, Georgia law imposes strict limits on how much can be taken and provides protections for debtors.
Georgia law caps wage garnishment at the lesser of 25% of a debtor's weekly disposable earnings or the amount exceeding $217.50 per week. For private student loans, the maximum garnishment is 15%. If a debtor earns less than $217.50 in disposable income per week, no garnishment can occur.
This information must be clearly stated on the garnishment summons, ensuring employers adjust the withholding amount accordingly. Child support garnishments, however, are much higher, ranging from 50% to 65% of disposable earnings. The exact percentage depends on whether the debtor supports another spouse or child and the extent of any unpaid child support.
Certain income sources are entirely exempt from garnishment, including Social Security benefits, Supplemental Security Income (SSI), unemployment benefits, workers' compensation, VA benefits, and state pensions. Additionally, Georgia law protects employees from being fired due to wage garnishment for a single debt. As outlined in the Georgia Code:
"No employer shall discharge an employee by reason of the fact that such employee's earnings have been subjected to garnishment for any one obligation." - Georgia Code § 18-4-5
Debtors can immediately file exemption claims to safeguard protected funds. Furthermore, both creditors and debtors have the option to voluntarily agree on a reduced garnishment amount by using a specific form provided under Code Section 18-4-90.
Understanding how to enforce and renew judgments in Georgia is a critical step for creditors aiming to recover debts. Once a judgment is secured, creditors must act within specific timeframes to ensure their rights remain enforceable.
In Georgia, domestic judgments are enforceable for seven years from the date they are issued or entered on the general execution docket. Foreign judgments - those issued in other states - are enforceable for five years. During these periods, creditors can use various enforcement tools to collect what they're owed.
To begin enforcement, creditors should record the judgment with the superior court clerk's office. This creates a lien on the debtor’s real property. If the debtor owns property in multiple Georgia counties, creditors can file certified copies in those counties to extend the lien's reach. Common enforcement methods include:
"Winning a lawsuit is only half the battle - collecting on a judgment is where most plaintiffs get stuck." - Justin Conway, Attorney, Conway Eader
If a creditor fails to issue and record an execution within the seven-year active period, the judgment becomes dormant. Dormancy limits collection efforts, so creditors must act quickly to revive the judgment when this happens.
Georgia law allows creditors to revive dormant judgments within a three-year window, effectively extending enforceability to a total of 10 years. To avoid dormancy, creditors should ensure that an execution is issued and recorded on the general execution docket at least once every seven years.
If a judgment does become dormant, it can be revived through one of two methods:
For example, in Magnum Communs. Ltd. v. Samoluk (September 2005), the Georgia Court of Appeals upheld a creditor’s revival action because it was filed within the three-year dormancy window outlined in O.C.G.A. § 9-12-61. Similarly, in Auto. Credit Corp. v. White (February 2018), the court supported enforcement after the creditor sought domestication within the allowable timeframe.
Creditors must closely monitor the execution docket and maintain detailed records of judgment dates and filings. Once the combined 10-year enforceability period (seven years active plus three years for revival) expires, the judgment generally cannot be revived. It’s worth noting that during dormancy, interest continues to accrue at Georgia’s standard judgment rate of 12%.
| Judgment Type | Initial Validity | Revival Period | Total Enforceability Window |
|---|---|---|---|
| Domestic Georgia Judgment | 7 Years | 3 Years | 10 Years |
| Foreign Judgment | 5 Years | N/A (Must be domesticated) | 5 Years |
Debt collectors in Georgia who break the law can face steep fines and legal consequences. The severity of these penalties depends on the type of violation and the specific laws involved.
Under the Georgia Debt Adjustment Act, violations are treated as misdemeanors. Debt adjusters who fail to meet requirements like audits, insurance, or maintaining trust accounts face a civil fine of at least $50,000 per violation. Multiple violations can quickly lead to substantial financial penalties.
"Any person who engages in debt adjusting in violation of the provisions of Code Section 18-5-3.1 or subsection (b) of Code Section 18-5-3.2 shall further be liable for a civil fine of not less than $50,000.00." - O.C.G.A. § 18-5-4
Debt adjusters who charge excessive fees or fail to distribute funds within 30 days are liable to repay all fees plus an additional $5,000 penalty. Meanwhile, under the federal Fair Debt Collection Practices Act (FDCPA), collectors can be held responsible for actual damages and statutory damages of up to $1,000 per violation. If a plaintiff wins an FDCPA case, they can recover damages, court costs, and attorney fees.
Additionally, violations of Georgia's debt adjustment laws are treated as breaches of the Georgia Fair Business Practices Act (FBPA), exposing collectors to further state-level enforcement actions. These penalties highlight the importance of following Georgia's debt collection laws closely, as violations can lead to significant financial and legal consequences.
Breaking debt collection laws in Georgia comes with serious legal risks. Under the FDCPA, consumers have the right to sue debt collectors in state or federal court within one year of the violation.
"Under the FDCPA, you have the right to sue a debt collector in state or federal court within one year from the date of the violation. If you win, you may recover damages in the amount of any losses you suffered as a result of the violation, plus an additional amount of up to $1,000.00." - Georgia Attorney General's Consumer Protection Division
For example, in 2020, the Federal Trade Commission and a federal court intervened against Critical Resolution Mediation LLC, a debt collection agency in Atlanta. The company was shut down after its agents were found threatening consumers with arrest, impersonating law enforcement officers and attorneys, and attempting to collect non-existent debts. This case illustrates how severe violations can lead to business closures.
Under the Georgia Installment Loan Act (GILA), lenders offering loans of $3,000 or less can face license suspension or revocation for unreasonable collection practices. If a court finds that violations were intentional and fraudulent, the loan may be declared null and void. Victorious plaintiffs in GILA cases can recover double the amount of interest and fees paid, with a minimum recovery of $100 guaranteed.
Debtors also have the option to file complaints with agencies like the Georgia Attorney General's Consumer Protection Division, the Federal Trade Commission (FTC), or the Consumer Financial Protection Bureau (CFPB). These agencies can investigate violations, issue cease-and-desist orders, and impose civil penalties, providing additional enforcement beyond private lawsuits. Together, these legal and administrative options give consumers powerful tools to hold debt collectors accountable.
Navigating the complex regulatory landscape of licensing and contact protocols can be challenging for debt buyers and collection agencies. Debexpert’s platform simplifies these processes, helping ensure compliance while streamlining portfolio management.
In Georgia, debt buyers must confirm that the original lenders held proper licenses before purchasing portfolios. This is crucial because debts originating from unlicensed lenders are unenforceable under Georgia law. Debexpert addresses this with secure documentation and automated tools that validate licensing credentials. Additionally, the platform helps agencies comply with the Fair Debt Collection Practices Act (FDCPA) by automating the delivery of written validation notices within five days of initial contact. This guarantees that debtors are informed of their 30-day dispute window.
If a consumer disputes a debt during this period, Debexpert’s secure file storage system ensures smooth access to critical verification documents, such as the "chain of assignment" and original contracts, allowing collection activity to pause until proper verification is provided.
"The Georgia Fair Business Practices Act goes further by prohibiting unfair or deceptive practices in consumer transactions, including debt collection... the FBPA applies to original creditors, not just third-party collectors." - Guardian Litigation Group
Debexpert also helps agencies stay on top of compliance deadlines and performance metrics, adding another layer of operational control.
Debexpert’s portfolio analytics tools are particularly valuable for tracking Georgia’s statute of limitations. For example, written contracts like credit cards and personal loans have a six-year limit, while oral contracts or open accounts are limited to four years. With disputed collections accounting for 38% of cases, these tools help agencies avoid pursuing time-barred debts that could result in legal complications.
Georgia’s courts processed nearly 60,000 garnishment filings in 2019 - a sharp rise from 2016’s numbers. This underscores the importance of careful compliance and portfolio management. Debexpert’s platform supports this by documenting all communications between buyers and sellers, ensuring adherence to Georgia’s strict contact hours (8:00 a.m. to 9:00 p.m.).
For agencies pursuing wage garnishments, which are capped at 25% of a debtor’s disposable income, Debexpert’s analytics can track judgment expiration dates (7 years) and renewal deadlines. By integrating compliance tools with portfolio management features, the platform enables debt buyers and collection agencies to stay within Georgia’s legal guidelines while improving operational efficiency.
Georgia's debt collection industry operates under strict federal and state regulations, requiring careful compliance. For instance, licensing is mandatory for handling installment loans of $3,000 or less, and failing to obtain the necessary license is classified as a felony in the state.
The challenges in this field are evident. Around 38% of debt collection complaints involve attempts to recover debts that are not actually owed. This highlights the importance of accuracy and adherence to the law.
Collectors must follow specific communication rules, such as avoiding calls between 10:00 P.M. and 5:00 A.M., and must also monitor the six-year statute of limitations for written contracts. As stated in the Georgia Compilation of Rules and Regulations:
"Every licensee shall be responsible for compliance with O.C.G.A. § 7-3-33 by the employee or agent in collecting or attempting to collect any debt allegedly owed to the licensee." - Ga. Comp. R. & Regs. 80-14-5-.05
To meet these requirements, many agencies are turning to advanced compliance platforms. These tools help streamline documentation, track deadlines, and ensure adherence to legal standards. This is particularly important in Georgia, where civil penalties for non-compliance can be steep - up to twice the amount of interest and fees paid, with a minimum penalty of $100.
Georgia doesn't require specific licenses for debt collectors. However, debt collection activities in the state are governed by certain laws. Collectors must adhere to these regulations to ensure they operate within legal boundaries.
In Georgia, the time limit for collecting a debt - known as the statute of limitations - can be reset if the debtor acknowledges the debt in writing. This acknowledgment essentially restarts the clock, giving creditors more time to pursue legal collection efforts.
In Georgia, debt collection laws give you the right to stop collectors from calling you at work or during specific times. All you need to do is inform them of your preferences. While there’s no requirement to follow a formal process, it’s a good idea to put your request in writing. This creates a clear record of your communication. If the collector ignores your request and continues to call, they might be breaking the law, and you can report them to the proper authorities.
More than a decade of Ivan's career has been dedicated to Finance, Banking and Digital Solutions. From these three areas, the idea of a fintech solution called Debepxert was born. He started his career in Big Four consulting and continued in the industry, working as a CFO for publicly traded and digital companies. Ivan came into the debt industry in 2019, when company Debexpert started its first operations. Over the past few years the company, following his lead, has become a technological leader in the US, opened its offices in 10 countries and achieved a record level of sales - 700 debt portfolios per year.
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