Debt collection is the process by which a person or entity who is owed money or property seeks payment for the debt. Debt collection may be performed by the person or entity who is owed the debt (the creditor), or may be performed by a third-party debt collector hired by the creditor to collect the debt on behalf of the creditor. Sometimes creditors sell the debt to another entity at a discounted value, and the entity that purchases the debt becomes the creditor.

Debts that are often the subject of debt collection efforts include (1) credit card debt; (2) car or auto loan debt; (3) medical debt; (4) student loan debt; (5) unpaid utility and telephone bills; and (6) personal loan debt.

If you owe money, you have a legal obligation to repay it. But state and federal laws—such as the Fair Debt Collection Practices Act—prohibit debt collectors from using deceptive or abusive behavior to collect the debt.

In Delaware, debt collection is regulated by both state statutes and federal law, including the Fair Debt Collection Practices Act (FDCPA). The FDCPA sets nationwide standards for debt collection practices, prohibiting deceptive, abusive, or unfair behavior by debt collectors. This includes restrictions on the times of day collectors can contact debtors, prohibiting the use of threats or obscene language, and requiring debt collectors to validate the debt upon request. Delaware state law also provides additional protections and may regulate the conduct of debt collectors and the collection practices of creditors. For example, Delaware has statutes of limitations on how long a creditor can take legal action to collect a debt, which varies depending on the type of debt. Credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans are all subject to debt collection efforts. If a debt is sold to a third party, the new entity becomes the creditor and must adhere to the same legal standards for collection. Debtors in Delaware who believe their rights have been violated by a debt collector can seek legal recourse, which may include contacting an attorney to discuss potential violations of the FDCPA or state laws.