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 North Carolina, debt collection is regulated by both state statutes and federal law. The federal Fair Debt Collection Practices Act (FDCPA) provides a framework that protects consumers from abusive, deceptive, and unfair debt collection practices. Under the FDCPA, debt collectors are prohibited from engaging in certain behaviors, such as calling at unreasonable hours, using threats of violence, or making false statements about the debt. North Carolina also has its own set of laws that govern debt collection, which may provide additional protections beyond the federal law. For instance, the North Carolina Debt Collection Act (NCDCA) also prohibits deceptive practices and sets forth specific requirements for debt collectors operating within the state. Creditors in North Carolina can use third-party debt collectors or may sell the debt to another entity, which then becomes the creditor. Common types of debts that are collected include credit card debt, auto loans, medical debt, student loans, utility bills, and personal loans. It's important for consumers to know their rights under both state and federal laws when dealing with debt collectors to ensure they are treated fairly and lawfully.