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 Nebraska, debt collection is regulated by both state statutes and federal law. The federal Fair Debt Collection Practices Act (FDCPA) sets the standard nationwide, prohibiting debt collectors from using deceptive, abusive, or unfair practices to collect debts. This includes specific rules on communication, such as restricting calls to certain times of the day and prohibiting contact at the debtor's workplace if it's known to be inconvenient or prohibited by the employer. Nebraska's Collection Agency Act also governs the practices of debt collectors within the state, requiring them to be licensed and to adhere to certain operational guidelines. Debts commonly subject to collection efforts include credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. It's important to note that while creditors or third-party debt collectors can seek payment, they must do so within the bounds of these laws. If a debt is sold to another entity, that entity steps into the shoes of the original creditor and must also comply with the applicable debt collection laws.