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 Minnesota, 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. Minnesota's own collection laws complement the FDCPA and provide additional protections. For example, the Minnesota Collection Agencies Act requires debt collectors to be licensed and outlines permissible debt collection practices within the state. Debts commonly subject to collection efforts include credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. While creditors or their assignees have the right to collect what is owed to them, they must adhere to the legal standards set forth to protect consumers from harassment and unfair treatment during the debt collection process.