Debt collection is a necessary part of the economy, but it can also be a stressful and frustrating experience for both the debtor and the creditor. In Georgia, there are laws in place to protect the rights of both parties during the debt collection process. This article will outline the key facts you need to know about Georgia debt collection laws.
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There’s a lot of ways to avoid being annoyed by debt collectors but our bets advice for you is to pay your bills on time so you don’t need to deal with them. For some people, this task might be very difficult, but there are many solutions to get out of debt like debt relief companies. We’ll also compare debt consolidation vs debt settlement so you can make an informed decision.
Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) is a federal law that regulates the behavior of debt collectors. While it is a federal law, it applies to debt collectors operating in Georgia. The FDCPA prohibits debt collectors from engaging in abusive, deceptive, or unfair practices when attempting to collect a debt. Some of the key provisions of the FDCPA include:
- Debt collectors cannot call you before 8 am or after 9 pm.
- Debt collectors cannot harass, oppress, or abuse you. This includes using obscene language, threatening violence, or repeatedly calling you with the intent to annoy or harass you.
- Debt collectors cannot use false or misleading statements when attempting to collect a debt. This includes misrepresenting the amount you owe, threatening legal action they cannot take, or falsely claiming to be attorneys or government representatives.
- Debt collectors must provide you with certain information, such as the name of the creditor and the amount you owe, within five days of their initial communication with you.
- Debt collectors must cease communication with you if you request that they do so in writing.
It is important to note that the FDCPA only applies to third-party debt collectors. If the creditor is attempting to collect the debt themselves, the FDCPA does not apply.
Georgia Fair Business Practices Act (GFBPA)
The Georgia Fair Business Practices Act (GFBPA) is a state law that regulates the behavior of debt collectors. The GFBPA prohibits debt collectors from engaging in deceptive or unfair practices when attempting to collect a debt. Some of the key provisions of the GFBPA include:
- Debt collectors cannot use any false, deceptive, or misleading representation or means in connection with the collection of a debt.
- Debt collectors cannot threaten to take any action that cannot legally be taken or that is not intended to be taken.
- Debt collectors cannot communicate with you in a manner that is intended to harass or intimidate you.
- Debt collectors must provide you with certain information, such as the name of the creditor and the amount you owe, within five days of their initial communication with you.
Unlike the FDCPA, the GFBPA applies to both third-party debt collectors and creditors attempting to collect the debt themselves.
Statute of Limitations
The statute of limitations is a law that sets a time limit on how long a creditor has to sue you for an unpaid debt. In Georgia, the statute of limitations for most types of debts is six years. This means that if a creditor has not sued you for the debt within six years of the date it became due, they are generally barred from doing so.
It is important to note that there are exceptions to the six-year statute of limitations. For example, if you make a payment on the debt after it became due, the statute of limitations may be reset. Additionally, the statute of limitations for certain types of debts, such as judgments or tax debts, may be longer or shorter than six years.
Garnishment
Garnishment is a legal process by which a creditor can seize a portion of your wages, bank accounts, or other assets to satisfy a debt. In Georgia, creditors can garnish up to 25% of your disposable earnings (the amount of your paycheck after taxes and other deductions) or the amount by which your disposable earnings exceed 30 times the federal minimum wage, whichever is less.
There are certain types of income that are exempt from garnishment in Georgia, such as Social Security benefits, workers’ compensation benefits, and unemployment benefits. Additionally, if your disposable earnings are less than 30 times the federal minimum wage, you may be exempt from garnishment altogether.
Bankruptcy
Bankruptcy is a legal process that allows you to discharge certain types of debts and get a fresh start. In Georgia, there are two types of bankruptcy that individuals can file: Chapter 7 and Chapter 13.
Chapter 7 bankruptcy allows you to discharge most unsecured debts, such as credit card debt or medical bills, while keeping certain exempt assets, such as your home or car. However, not all debts can be discharged in Chapter 7, such as most tax debts and student loans.
Chapter 13 bankruptcy allows you to restructure your debts and pay them off over a three- to five-year period. This can be a good option if you have significant assets that you want to keep but are struggling to make your monthly payments.
It is important to note that bankruptcy should be a last resort and can have serious long-term consequences, such as damage to your credit score and difficulty obtaining credit in the future.
Avoid Debt Collectors
Dealing with debt collectors can be a stressful and overwhelming experience. To avoid the hassle of debt collection, it’s important to manage your finances responsibly and pay your bills on time.
Debt Settlement
Debt settlement is a process where a debtor negotiates with their creditor to reduce the amount they owe. This is usually done by paying a lump sum amount that is less than the total debt owed. Debt settlement can be a viable option for individuals who are struggling with debt and cannot afford to pay off their debts in full. It can also be a way to avoid bankruptcy and protect credit scores.
Debt Consolidation vs Debt Settlement
Explore the differences between debt consolidation and debt settlement to find the right solution for your financial situation. Debt consolidation involves combining multiple debts into a single loan or repayment plan, simplifying your payments and potentially lowering interest rates.
On the other hand, debt settlement involves negotiating with creditors to reduce the overall amount owed, often resulting in a lump-sum payment or structured settlement. Understand the pros, cons, and implications of each method to make an informed decision towards achieving debt relief.
Georgia Debt Collection Laws: Final Thoughts
Debt collection can be a stressful and overwhelming experience, but it is important to know your rights and understand the laws that govern the process. In Georgia, the FDCPA and GFBPA provide important protections for debtors, while the statute of limitations, garnishment, and bankruptcy provide options for resolving unpaid debts. If you are struggling with debt, it is important to seek the advice of a qualified attorney who can help you navigate the legal process and protect your rights.
FAQs
What is the statute of limitations on debt collection in Georgia?
In Georgia, the statute of limitations on debt collection is six years from the date of the last payment or the last time the debtor acknowledged the debt in writing.
Can debt collectors contact me at work?
Debt collectors are allowed to contact you at work unless you tell them not to or your employer prohibits it.
What is the maximum interest rate that can be charged on a debt in Georgia?
The maximum interest rate that can be charged on a debt in Georgia is 7% per year.
Can a debt collection agency garnish my wages?
Yes, a debt collector can garnish your wages in Georgia. However, they must first obtain a court order.
Can a debt collector sue me for a debt?
Yes, a debt collector can sue you for a debt in Georgia. However, they must follow the proper legal procedures and obtain a court order.
Can a debt collector contact my family or friends about my debt?
Debt collectors are only allowed to contact family or friends about your debt to obtain your contact information. They cannot discuss the details of your debt with them.
Can a debt collector charge me for additional fees or expenses?
Debt collectors can only charge you for the amount of the debt, interest, and any court-ordered fees. They cannot add additional fees or expenses.
Can I request that a debt collector stop contacting me?
Yes, you can request that a debt collector stop contacting you. However, this does not absolve you of your debt obligation.
Can a debt collector report my debt to credit bureaus?
Yes, a debt collector can report your debt to credit bureaus, which can negatively impact your credit score.
Can I dispute a debt that a collector is trying to collect?
Yes, you have the right to dispute a debt that a collector is trying to collect. You can do this in writing within 30 days of receiving a notice from the collector.
Glossary
- Debt collection – The process of collecting money owed to a creditor by an individual or business entity.
- Statute of limitations – The maximum amount of time allowed for a creditor to pursue legal action against a debtor for an unpaid debt.
- Fair Debt Collection Practices Act (FDCPA) – A federal law that establishes guidelines for debt collection practices and prohibits certain abusive tactics.
- Collection agency – A company hired by a creditor to collect debt on their behalf.
- Garnishment – A legal process in which a creditor can obtain a court order to seize a portion of a debtor’s wages or assets to satisfy a debt.
- Harassment – Any behavior by a debt collector that is intended to intimidate or coerce a debtor into paying a debt.
- Consumer credit reporting agencies – Companies that gather and maintain credit information on individuals and businesses, which is used to determine creditworthiness.
- Creditors – Individuals or businesses that lend money or extend credit to others.
- Debtor – An individual or business that owes money to a creditor.
- Bankruptcy – A legal process in which a debtor declares that they are unable to pay their debts and seeks protection from creditors.
- Collection laws – State laws that regulate the collection of debt by creditors and collection agencies.
- Interest – The amount of money charged by a creditor on a debt, usually expressed as a percentage of the original amount owed.
- Student loan debt – Student loan debt refers to the amount of money borrowed by students to finance their higher education and the resulting financial obligation to repay the loan, often with interest, over a specified period of time.
- Debt collection agencies – Debt collection agencies are businesses that specialize in collecting unpaid debts on behalf of creditors or lenders.
- Repossession – The act of a creditor taking possession of a debtor’s property used as collateral for a loan or debt.
- Settlement offer – An agreement between a debtor and creditor to resolve a debt for less than the full amount owed.
- Wage assignment – A legal process in which a creditor can obtain a court order to have a portion of a debtor’s wages automatically deducted to pay a debt.
- Written notice – A formal communication from a creditor or collection agency to a debtor, usually sent by mail, outlining the details of a debt and any actions that may be taken to collect it.
- Debt validation – A process in which a debtor requests that a creditor or collection agency provide proof of the debt owed.
- Default judgment – A court order issued in favor of a creditor when a debtor fails to respond to a lawsuit or debt collection action.
- Servicemembers Civil Relief Act (SCRA) – A federal law that provides protections to active-duty military personnel against certain debt collection actions.
