Creditor and debtor law includes the rights and obligations of (1) creditors who extend credit and make loans to consumers and businesses and (2) consumers and businesses who seek credit and loans for their personal and business finances. Creditor/debtor law consists primarily of state and federal statutes.
In Arizona, creditor and debtor law is governed by both state statutes and federal laws. Creditors are individuals or entities that lend money or extend credit, while debtors are those who borrow money or incur debt. Arizona's statutes outline the legal framework for how debts can be legally collected and the rights of both parties in the credit relationship. This includes regulations on debt collection practices, interest rates, and the enforcement of debts through liens and garnishments. Federal laws such as the Fair Debt Collection Practices Act (FDCPA) also provide protections against abusive debt collection practices and apply to all states, including Arizona. Additionally, the Truth in Lending Act (TILA) requires creditors to disclose credit terms to consumers, which is applicable in Arizona as well. Debtors in Arizona have certain rights to protect them from unfair practices, including the right to receive notice of collection actions and the right to dispute incorrect debt information.