Attorney at Debt Advisors Law Offices

Practice Areas: Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Stop Foreclosure

When phone calls, letters, and threats from debt collectors begin piling up, it’s easy to feel like you’re out of options. The truth is, you have more rights than many collectors want you to believe. Both federal and Wisconsin laws set clear limits on what debt collectors can do, and they give you tools to respond when those limits are ignored.

Knowing these protections is key to stopping harassment and making smarter financial choices. In some cases, speaking with a Wisconsin bankruptcy lawyer can also help you understand how broader debt relief options, like bankruptcy filings, work alongside these consumer protections.

This article explains the safeguards provided under the Fair Debt Collection Practices Act and the Wisconsin Consumer Act, and it highlights practical steps you can take when facing unfair collection practices.

Why Debt Collection Laws Exist

Debt collectors often purchase overdue accounts for a fraction of the original amount owed. Their profit depends on collecting as much as possible, which sometimes leads to aggressive and unfair tactics. Common examples include phone harassment, threats of lawsuits, or sending letters that look like official court documents.

These actions can leave people feeling powerless. That is why federal and state lawmakers created safeguards. Both the Fair Debt Collection Practices Act (FDCPA) and the Wisconsin Consumer Act set clear rules for collectors and give consumers ways to take action when those rules are broken.

Federal Law: FDCPA Protections

The Fair Debt Collection Practices Act (FDCPA) is a federal law that applies nationwide. It restricts how third-party debt collectors may contact and interact with consumers. The FDCPA covers personal, household, and family debts such as credit cards, medical bills, and auto loans.

Key prohibited practices include:

  • Harassing or threatening consumers with harm.
  • Using obscene language or repeated calls to intimidate.
  • Pretending to be government officials or attorneys.
  • Misrepresenting the amount of debt owed.
  • Revealing debt information to friends, family, or employers.

When a debt collector violates the FDCPA, consumers can sue in federal court. Remedies include actual damages for financial or emotional harm, statutory damages of up to $1,000, and attorney’s fees.

For a complete overview, visit the Federal Trade Commission’s FDCPA resource.

Wisconsin Consumer Act

In addition to federal protections, Wisconsin residents benefit from the Wisconsin Consumer Act (WCA). This law provides another layer of defense against abusive debt collection.

Collectors who break the rules under Wisconsin law may be liable for the same actual damages recognized under the FDCPA, plus an additional penalty. The WCA allows for twice the finance charge connected to the debt, capped at $1,000.

Examples of violations under the WCA include contacting a consumer by postcard, using a false business name, or threatening criminal prosecution when it does not apply.

By combining both federal and state remedies, Wisconsin residents are in a stronger position than many consumers in other states.

Remedies and Legal Options

Suing a debt collector is one option when violations occur. However, it is important to understand that filing a lawsuit does not erase the debt itself. Instead, it can provide compensation for harm and hold the collector accountable.

Another legal tool is the automatic stay in bankruptcy. When a bankruptcy petition is filed, the court issues an automatic stay that immediately halts most collection efforts. This means creditors and their agencies cannot contact you without court permission.

While bankruptcy is a more significant step, it can provide relief from ongoing harassment and create a structured plan for managing debt.

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Comparison of Protections

The differences between federal and state protections can be easier to understand when viewed side by side.

Protection

Federal (FDCPA)

Wisconsin Consumer Act

Harassment / threats Prohibited Prohibited
False claims / misrepresentation Prohibited Prohibited
Statutory damages Up to $1,000 Twice finance charge (max $1,000)
Attorney’s fees recovery Allowed Allowed
Scope Nationwide Wisconsin-specific

This comparison shows how Wisconsin’s laws go further in protecting consumers from unfair practices.

Important Facts and Statistics

Debt collection remains one of the most common sources of consumer complaints. According to the Federal Trade Commission (FTC), complaints about debt collection consistently rank among the top categories of consumer grievances in the U.S.

The combination of federal and state laws makes it clear that consumers do not have to tolerate harassment or false claims from debt collectors.

Frequently Asked Questions

What is considered debt collector harassment under FDCPA?

Harassment includes repeated phone calls, obscene language, threats, or pretending to be an official when they are not authorized.

Can I sue a debt collector in Wisconsin?

Yes. Both federal and state laws allow consumers to sue debt collectors for damages if they violate the rules.

Will suing a debt collector erase my debt?

No. Suing can provide financial compensation but does not remove the balance owed on the account.

How does the automatic stay in bankruptcy affect debt collectors?

Once bankruptcy is filed, most collection efforts must stop immediately under the automatic stay.

Are debt collectors allowed to contact my employer or family?

Generally no. Collectors cannot disclose your debt to third parties except in limited legal situations.

What should I do if I believe a debt collector violated my rights?

Document all contact, keep letters or recordings, and seek guidance to understand your legal options.

Conclusion

Consumers in Wisconsin have strong rights under both federal and state law when facing abusive debt collectors. The FDCPA and Wisconsin Consumer Act set clear boundaries that collectors must follow and give consumers tools to hold violators accountable. While lawsuits may not erase debt, they can provide compensation and prevent future harassment.

If you are struggling with unfair collection practices, Debt Advisors Law Offices can help you understand your rights and explore all available legal options, including pursuing claims against collectors or seeking debt relief through bankruptcy.

Learn about bankruptcy protections, types of bankruptcy, how to get started, what to expect, and who to trust. Filing bankruptcy is the ONLY way to completely eliminate debt. If bankruptcy is right for you, it offers powerful protections that cannot be achieved through alternative solutions such as hardship relief, loans, or debt settlement.

  • Exceptional service. The entire team was friendly and knowledgeable. The attorney took his time to walk me through step by step. I will recommend this law office to anyone!

    J Burks

  • I went through Debt Advisors as a referral by a friend. I am very happy I did so. The staff that I worked with were very helpful and showed a high level of professionalism. They were always able to answer any questions that I had. I was very happy with the attorney that I worked with, Michael Georg. Very professional.

    Terri Grote

  • Attorney Chad Schomburg and Debt Advisors helped me with my debt about three years ago. Chad explained the process to me and answered any questions I had, and the assistants compiled my documentation very efficiently while keeping my case moving forward. They were always available when I needed them, and even years later, I’m able to reach out to them, and they are willing to help. They have turned my life around 100%, and I could not have done it without them! Absolutely recommended!

    Tim Harris

  • They were there for my family from day 1 until the end, 5 years later (Ch. 13). Whenever I had questions or concerns they were always very responsive and gave me excellent advice. Michael and Jeremy are both exceptional bankruptcy attorneys. I highly recommend Debt Advisors.

    Steve

  • After I had to go on disability, I used my credit cards a lot more thinking I could pay them off when I was able to go back to work. That didn’t happen and I found myself so much worse off than I could handle. I went to Debt Advisors feeling terrible about what I had to do. Chad and everyone there were very understanding and put my mind at ease while taking such great care of me. They were there every step of the way and supported me when I was “freaking out”!! Every time I needed to contact them; their response time was amazing!! God forbid I ever need to go through this again, but I know where to turn if I need help! Debt Advisors are more than just filing bankruptcy on my behalf. They really care about what you are going through!! Thank you, Chad, Jeremy, Mike, and everyone at Debt Advisors!! I cannot tell you enough how much I appreciate all of you!! J Hammond

    Steve

  • After I had to go on disability, I used my credit cards a lot more thinking I could pay them off when I was able to go back to work. That didn’t happen and I found myself so much worse off than I could handle. I went to Debt Advisors feeling terrible about what I had to do. Chad and everyone there were very understanding and put my mind at ease while taking such great care of me. They were there every step of the way and supported me when I was “freaking out”!! Every time I needed to contact them; their response time was amazing!! God forbid I ever need to go through this again, but I know where to turn if I need help! Debt Advisors are more than just filing bankruptcy on my behalf. They really care about what you are going through!! Thank you, Chad, Jeremy, Mike, and everyone at Debt Advisors!! I cannot tell you enough how much I appreciate all of you!! J Hammond

    J Hammond

  • Chad Schomburg and his Staff did a phenomenal job for me and in an expeditious manner. I’ve recommend countless clients to Chad Schomburg, Wow!!! Outstanding customer service from the Schomburg office:)

    Lisa Williamson