The Fair Debt Collection Improvement Act (H.R. 2704) has been introduced in Congress and would prohibit collectors from attempting to collect debts after the statute of limitations has expired. Illinois revised its Collection Agency Act effective January 1, 2026, narrowing licensing requirements. The CFPB continues reviewing its "larger participant" rule, which could change which collection agencies fall under direct federal supervision. "Sewer service" — the practice of filing false affidavits of service — remains a systemic problem in debt collection litigation.

If you are a process server, you already know: collection agencies are not your biggest fans. The reason is simple — proper service of process slows down their debt collection machine. And in an industry built on volume and speed, anything that delays a default judgment is a problem for their bottom line.

Here is the reality. When a collection agency or debt buyer sues to collect a debt, they need to serve the debtor with a summons and complaint. Proper service establishes the court's jurisdiction over the defendant and protects their constitutional right to due process. Without it, any judgment obtained can be challenged and vacated. For collection agencies that rely on default judgments — where the debtor never shows up to court — proper service is the one procedural requirement that stands between them and an easy win.

This creates a perverse incentive. The term "sewer service" exists for a reason. It refers to the practice of filing false affidavits of service, claiming a debtor was served when they never were. According to consumer advocates and defense attorneys, this remains a systemic problem. Process servers retained by plaintiff-side collection firms have been documented serving wrong addresses or falsely stating how service was conducted. The result: debtors lose by default without ever knowing they were sued.

At the federal level, the Fair Debt Collection Improvement Act (H.R. 2704, 119th Congress) has been introduced. If enacted, it would prohibit collectors from attempting to collect any consumer debt after the statute of limitations has expired — directly targeting a common tactic where collectors pressure consumers into paying time-barred debts by implying legal action is possible.

Meanwhile, the CFPB's Regulation F, which took effect in November 2021, remains the most significant federal update to debt collection regulation. It established the first-ever call frequency cap (seven calls per debt within seven days), created rules for electronic communications, and required disclosures when collecting on time-barred debts. The CFPB is also reviewing its "larger participant" rule, which could expand direct federal supervision to more collection agencies.

At the state level, Illinois revised its Collection Agency Act effective January 1, 2026, narrowing who must be licensed. Tennessee adopted new licensing requirements for debt resolution services. And multiple states increased wage garnishment protections — Illinois now protects $1,000 of a debtor's bank account automatically and has increased homestead exemptions from $15,000 to $50,000.

For process servers, the takeaway is clear: your role protects due process. Every legitimate service you complete ensures that a debtor has the opportunity to defend themselves. That is not an obstacle to justice — it is justice itself.

Video Resource: For a deeper dive into Regulation F and its impact on debt collection practices, watch this overview: Understanding CFPB Regulation F (YouTube)

Sources & Further Reading:

CFPB Regulation F — Official Page

Fair Debt Collection Improvement Act (Congress.gov)

2026 State Consumer Law Changes (National Consumer Law Center)

Process Servers & Debt Litigation (360 Legal)

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