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 Connecticut, debt collection is regulated by both state statutes and federal law, including the Fair Debt Collection Practices Act (FDCPA). The FDCPA sets nationwide standards for the industry, prohibiting deceptive, unfair, or abusive practices by third-party debt collectors when collecting consumer debts. This includes specific rules on communication, such as restricting calls to certain hours, prohibiting harassment, and requiring collectors to cease communication if requested in writing. Connecticut also has its own laws that complement federal regulations, providing additional protections to consumers. For example, the Connecticut Department of Banking oversees the licensing of collection agencies, and state law requires collectors to provide certain disclosures and follow specific procedures when collecting debts. Creditors and debt collectors in Connecticut must adhere to these laws when attempting to collect various types of debts, including 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 who believe their rights have been violated can file a complaint with the Connecticut Department of Banking or seek legal advice from an attorney.