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 Massachusetts, debt collection is regulated by both state statutes and federal law. The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets national standards for the collection of debts, prohibiting deceptive, abusive, or unfair practices by third-party debt collectors. Massachusetts also has its own set of laws that provide additional protections to consumers. These laws apply to various types of debts including credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. Debt collectors in Massachusetts must adhere to these regulations when attempting to collect debts. For instance, they cannot harass or threaten consumers, must provide validation of the debt if requested, and are limited in the times they can contact debtors. If a debt is sold to another entity, the new creditor must also follow these laws. Consumers in Massachusetts have the right to request that debt collectors cease communication under certain circumstances and can dispute the validity of the debt within a specified timeframe. Violations of these laws can result in penalties for the debt collectors and potential legal recourse for the consumers.