What Is Debt Collection?
Debt collection is the process of pursuing payment of overdue debts, either by the original lender or by a third-party collection agency that works on its behalf or has bought the debt. In the US, the Fair Debt Collection Practices Act sets rules on how third-party collectors may communicate with consumers.
Consumer Protections
US rules generally prohibit harassment and false statements, limit contact at inconvenient times, and give consumers the right to request validation of a debt.
Other Countries
Many countries have their own debt collection laws with different rules.
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.