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 California, debt collection is regulated by both state and federal laws. The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets national standards for debt collection practices, prohibiting deceptive, abusive, or unfair methods. California has its own set of laws that complement the FDCPA, including the Rosenthal Fair Debt Collection Practices Act, which extends similar protections to consumers against creditors and debt collectors. Additionally, the California Consumer Privacy Act (CCPA) gives consumers certain rights regarding their personal information held by businesses, which can include information related to debts. Debt collectors in California must adhere to these laws when attempting to collect various types of debts such as credit card, auto loan, medical, student loan, utility bills, and personal loan debts. If a debt is sold to another entity, that entity becomes the creditor and is also bound by these regulations. Consumers have the right to request validation of the debt and may dispute inaccuracies. They are also protected from harassment, threats, and other improper conduct by debt collectors.