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 Arizona, 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. Arizona also has its own set of laws that govern debt collection practices within the state. These laws apply to various types of debts, including credit card debt, auto loans, medical debt, student loans, utility bills, and personal loans. Creditors in Arizona can attempt to collect debts themselves or hire third-party debt collectors. Additionally, creditors may sell the debt to another entity, which then becomes the new creditor. Debt collectors in Arizona must adhere to both federal and state regulations, which include providing debt validation notices and refraining from harassment or misrepresentation when attempting to collect a debt. Consumers have rights and can take legal action if a debt collector violates these regulations.