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 Rhode Island (RI), 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 harass or intimidate consumers, use false statements, or engage in unfair practices when they attempt to collect a debt. Rhode Island also has its own laws that may provide additional protections to consumers. These laws cover various types of debts including credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. When a debt is sold to a third party, the new entity becomes the creditor and must adhere to the same legal standards for collection practices. Consumers in Rhode Island who believe their rights have been violated by a debt collector can file a complaint with the state's Attorney General's office or seek legal advice from an attorney to understand their rights and potential remedies under both state and federal law.