Collins entered the season as the third cornerback on the depth chart behind Alford and Trufant. On September 3, 2016, Collins was suspended for the first four games of the regular season for violating the NFL's substance abuse policy.
On October 25, 2016, he appeared in his first game of the season after serving his four-game suspension and as the Falcons loss to the San Diego Chargers 33–30. He made his first start of the season in Week 9 after Desmond Trufant suffered a shoulder injury and was placed on injured-reserve. Collins recorded six solo tackles in a 24–15 loss to the Philadelphia Eagles. The next game, he made six combined tackles and a season-high three pass deflections during a 38–19 victory over the Arizona Cardinals. On December 24, 2016, he had a season-high recorded six solo tackles, two pass deflections, and intercepted Cam Newton for the first pick of his career, as the Falcons routed the Carolina Panthers 33–16. The following week, he recorded five solo tackles, three pass deflections, and intercepted Drew Brees in a 38–32 win over the New Orleans Saints.