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 South Carolina, 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, collectors are restricted in their methods of communication, prohibited from harassing or threatening debtors, and are required to validate the debt upon request. South Carolina does not have a specific state statute that broadly governs debt collection practices, but it does have laws that affect the process, such as statutes of limitations on debt and regulations on wage garnishment. For example, in South Carolina, the statute of limitations for most types of debt is three years. This means that a creditor has three years from the date of the last activity on the account to file a lawsuit to collect the debt. Additionally, South Carolina law limits the amount that can be garnished from a debtor's wages to satisfy certain types of debts. It's important for debtors to know their rights under these laws and to seek advice from an attorney if they believe a debt collector is acting in violation of the FDCPA or other relevant laws.