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 Idaho, as in other states, 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 behave when collecting certain types of debt, including credit card, auto loan, medical, student loan, utility bills, and personal loan debts. Under the FDCPA, debt collectors are prohibited from using deceptive, abusive, or unfair practices. They are not allowed to harass debtors, make false statements, or use unfair practices in attempting to collect a debt. Idaho also has its own laws that may provide additional protections to consumers. For example, the Idaho Collection Agency Act requires collection agencies to be licensed and regulates their activities within the state. If a debt is sold to another entity, that entity steps into the shoes of the original creditor and must also comply with these regulations. Consumers in Idaho who believe their rights have been violated by a debt collector can file a complaint with the Idaho Department of Finance or seek legal advice from an attorney to explore their options for recourse.