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 New Jersey, debt collection is regulated by both state statutes and federal law. The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets the standard for how debt collectors can operate, prohibiting deceptive, abusive, or unfair practices. Under the FDCPA, debt collectors are not allowed to use harassment, make false statements, or engage in unfair practices when they attempt to collect a debt. New Jersey also has its own set of laws that protect consumers from unfair debt collection practices. For example, the New Jersey Consumer Fraud Act provides additional protections against deceptive practices. Creditors in New Jersey can hire third-party debt collectors or sell the debt to another entity, which then becomes the creditor. Common types of debts subject to collection efforts 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 federal and state laws when dealing with debt collectors to ensure they are treated fairly and to avoid any practices that may violate these regulations.