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 York, debt collection is regulated by both state and federal laws. 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 debt collection practices. It applies to third-party debt collectors who are collecting on behalf of another creditor. New York State has its own set of laws that complement the FDCPA, including the New York State Debt Collection Procedures Law and various consumer protection statutes. These laws provide additional protections to consumers, such as requiring debt collectors to provide certain disclosures and prohibiting the collection of excessive interest or fees. New York also has a statute of limitations on debt collection, which limits the time frame within which a creditor can legally sue to collect a debt. For example, for consumer credit debts, the statute of limitations is generally six years from the date of the last activity on the account. It's important for consumers to know their rights under these laws, which include the right to dispute a debt and request verification of the debt's validity, the right to be treated fairly without harassment or threats, and the right to privacy regarding their financial obligations.