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.
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.
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:
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.
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.
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.
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.
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.
Harassment includes repeated phone calls, obscene language, threats, or pretending to be an official when they are not authorized.
Yes. Both federal and state laws allow consumers to sue debt collectors for damages if they violate the rules.
No. Suing can provide financial compensation but does not remove the balance owed on the account.
Once bankruptcy is filed, most collection efforts must stop immediately under the automatic stay.
Generally no. Collectors cannot disclose your debt to third parties except in limited legal situations.
Document all contact, keep letters or recordings, and seek guidance to understand your legal options.
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.