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 Maine (ME), debt collection is regulated by both state statutes and federal law, including the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from using deceptive, abusive, or unfair practices to collect debts from consumers. This includes protection against harassment, false statements, and unfair practices like threatening legal action that is not intended or not permitted. Maine also has its own set of laws that complement the FDCPA, providing additional protections to consumers. These laws apply to various types of debts, including credit card debt, auto loans, medical debt, student loans, utility bills, and personal loans. When a debt is sold to a third party, the purchaser steps into the shoes of the original creditor and must adhere to the same legal standards when attempting to collect the debt. Consumers in Maine have the right to request validation of the debt and may dispute any inaccuracies. If a consumer believes a debt collector has violated state or federal debt collection laws, they may file a complaint with the Maine Bureau of Consumer Credit Protection or seek legal advice from an attorney to explore potential remedies.