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Collections

Debt Collection Calls Are Skyrocketing in These States and Cities

A man looks concerned as he is being called on the phone by debt collectors!

Money

Are you getting more unknown calls than usual? It might be a debt collector.

In the first quarter of 2025, Americans filed more than 112,000 complaints with the Federal Trade Commission, or FTC. That's a 150% increase from the same time last year, according to an analysis from NumberBarn based on FTC data.

At the state level, Georgia led the nation with the most complaints per capita — about 80 complaints per 100,000 residents — followed by Texas, Florida and Delaware. Among major metro areas (adjusted for population), Atlanta tops the list with nearly 6,500 complaints per 100,000 residents, followed by Dallas and Miami. However, when looking at total complaint volume, Dallas comes out on top, with more than 7,000 complaints filed so far this year.

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The largest share of complaints came from Americans aged 30 to 39 — a group that holds more than half of the nation's student loan debt, which can expose them to legitimate collection efforts and fraudulent schemes.

Debt collection complaints have steadily risen since the start of the decade, averaging between 35,000 and 45,000 complaints per quarter. But this year’s spike is significant because reports more than doubled year over year, from 44,999 reports in the first quarter of 2024 to 112,583 in the first quarter of 2025.

It’s not entirely clear what’s driving the spike, but one expert points to a combination of two factors: traditional collectors ramping up efforts to recover funds in a shaky economy, and scammers exploiting the same environment to impersonate collectors.

"When it comes to debt collection, we’re seeing a perfect storm right now," Michael Boggiano, managing partner at Wealthcare Financial, wrote in an email to Money. "The surge in complaints against collectors reflects both a rise in legitimate frustration and a rise in fraud.”

The uptick in complaints mirrors a growing debt burden on U.S. households. Total Household debt hit a record high of $18.20 trillion this year and delinquencies have been rising — trends that often coincide with increased collection activity, Boggiano added.

What debt collectors can legally do

Nearly half of the complaints (47%) described the calls as “abusive, threatening or harassing” — roughly four times the volume seen in early 2024. The spike could reflect a rise in scam activity or suggest that some collectors are violating the Fair Debt Collection Practices Act, or FDCPA.

Under the FDCPA, debt collectors are legally required to follow strict guidelines when contacting consumers. The law, enforced by the FTC and the Consumer Financial Protection Bureau, or CFPB, prohibits abusive, deceptive and unfair collection practices.

For example, debt collectors are not allowed to:

Use threats or profanity
Call before 8 a.m. or after 9 p.m.
Publicly disclose the amount you owe
Impersonate government agencies or law enforcement
Attempt to collect debts you don’t actually owe

Keep in mind that debt collectors are required to identify themselves, and if asked, they must also disclose their employer. If you’re contacted by someone claiming to be a debt collector, ask for their full name, company name, business address and license number. Legitimate collectors should provide this information without hesitation.

If something feels off, you can report it to the FTC, CFPB or your state’s attorney general office. You also have the right to submit a written request asking the debt collector to stop contacting you. Once received, they are legally required to comply.

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