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 Indiana, debt collection is regulated by both state statutes and federal law. The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets the standard for how debt collectors can operate, prohibiting deceptive, abusive, or unfair practices. Indiana's state laws also provide additional regulations that complement the FDCPA. Debt collectors in Indiana must adhere to these laws when attempting to collect various types of debts, including credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. Creditors in Indiana may attempt to collect debts themselves or hire third-party debt collectors. Additionally, creditors sometimes sell debts to other entities at a discount, and these entities then become the new creditors. It is important for consumers in Indiana to know that while they have an obligation to repay their debts, they also have rights that protect them from harassment and improper debt collection practices. An attorney can provide specific guidance and assistance if an individual believes their rights under these laws have been violated.