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 Hawaii, debt collection is regulated by both state statutes and federal law. The federal Fair Debt Collection Practices Act (FDCPA) sets the standard nationwide, prohibiting debt collectors from using deceptive, abusive, or unfair practices to collect debts. This includes protection against harassment, false statements, and unfair practices. In Hawaii, the state's Collection Agencies Act also governs the conduct of debt collectors and collection agencies operating within the state. This Act requires collection agencies to be registered and to adhere to certain operational guidelines. Debts commonly involved in collection efforts include 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 comply with the same legal standards as the original creditor when collecting the debt. Consumers in Hawaii have the right to request verification of the debt and may dispute any inaccuracies. If a consumer believes a debt collector has violated the law, they may file a complaint with the Hawaii Department of Commerce and Consumer Affairs or seek legal recourse through the courts.