Debt Collection

Debt collection is the process of pursuing payment from individuals or businesses that are delinquent on their debts. Debt collectors are companies or individuals that are hired by creditors to recover unpaid debts. Continue Reading Below

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Discover the definition of financial terms related to debt collection.

Debt Collection Agency: How They Work, Your Rights, and What to Do

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Learn About Debt Collection

Statute of Limitations on Debt in New Mexico (2026): The 4-Year Rule

Andrew Latham

Statute of Limitations on Debt in Idaho (2026): The 5-Year Rule

Andrew Latham

Statute of Limitations on Debt in West Virginia (2026): The 5-Year Rule

Andrew Latham

Statute of Limitations on Debt in Hawaii (2026): The 6-Year Rule

Andrew Latham

Statute of Limitations on Debt in New Hampshire (2026): The 3-Year Rule

Andrew Latham

Statute of Limitations on Debt in Montana (2026): The 5-Year Rule

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Can I Rent An Apartment With Collections On My Credit Report?

Lacey Stark

How To Buy Foreclosed Homes With No Money

Ossiana Tepfenhart

Who Really Triggered the U.S. Housing Market Crash? New Study Reveals Shocking Answer

Jessica Walrack

How To Avoid Bankruptcy

Lara Jacobs

How to Beat a Debt Collector in Court

Benjamin Locke

Medical Bills Statute of Limitations by State

Lacey Stark

Can a Credit Card Company Sue You?

Lacey Stark

What Are the Differences Between Creditors and Debtors?

Cara Corey

Can Banks Take Your Money And What Should You Do About It?

Benjamin Locke

Can I Sell My House While in Forbearance?

Camilla Smoot

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About Debt Collection

When a borrower defaults on a loan or fails to pay a bill, the creditor may choose to hire a debt collector to recover the unpaid amount. The debt collector will attempt to contact the borrower and negotiate a payment plan or settlement to repay the debt. If the borrower is unable or unwilling to pay the debt, the debt collector may take legal action to recover the money, such as filing a lawsuit or garnishing the borrower's wages.

Debt collection is a regulated industry, and debt collectors are subject to federal and state laws that protect consumers from abusive or deceptive practices. These laws outline the rights and responsibilities of debt collectors, as well as the rights of borrowers who are being pursued for unpaid debts.

If you are being contacted by a debt collector, it is important to understand your rights and to carefully review any documents or communications from the debt collector to ensure that they are legitimate. If you believe that a debt collector is violating your rights or engaging in illegal practices, you can file a complaint with the Consumer Financial Protection Bureau or your state's attorney general's office.