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 tactics to collect the debt.

In Arkansas, debt collection is regulated by both state statutes and federal law. The federal Fair Debt Collection Practices Act (FDCPA) provides a framework that protects consumers from abusive, deceptive, and unfair debt collection practices. Under the FDCPA, debt collectors are prohibited from engaging in practices such as calling at unreasonable hours, using threats of violence, making false statements about the debt, or misrepresenting their identity. Arkansas also has its own set of laws that govern debt collection, which work in conjunction with the FDCPA to ensure fair treatment of debtors. These laws apply to 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 these regulations. Debtors in Arkansas have the right to request validation of the debt and may dispute inaccuracies. It's important for debtors to know their rights and for debt collectors to conduct their activities within the bounds of the law. An attorney can provide specific guidance on how these laws apply to individual situations.