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 Oregon, 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 harassment, making false statements, and unfair practices like attempting to collect more than is owed. In Oregon, the Oregon Fair Debt Collection Practices Act (OFDCPA) also provides additional protections. It mirrors many of the protections of the FDCPA and applies them to creditors collecting their own debts, which are not covered by the federal law. Debts commonly involved in collection efforts include credit card debt, auto loans, medical debt, student loans, utility bills, and personal loans. When a debt is sold to a third party, the purchaser steps into the shoes of the original creditor and must abide by the same collection laws. Consumers in Oregon have the right to request validation of the debt and may dispute inaccuracies. If a consumer believes a debt collector has violated the law, they may file a complaint with the Oregon Department of Justice or seek legal recourse through an attorney.