Are bill collectors allowed to contact your people on your street and do I have any recourse can I sue them. Thank you

It depends on the circumstances. Normally they can't. You can file charges with the FTC against them, but I don't think you can sue them.

Well who is "your people" ? Employees friends co workers

But to be honest many bill collectors break the laws all the time, they threaten to do all sorts of things, lie, cheat, do frauds.