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 Indiana, 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. Indiana's state laws also provide additional regulations that complement the FDCPA. Debt collectors in Indiana must adhere to these laws when attempting to collect various types of debts, including credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. If a debt is sold to a third party, the new entity becomes the creditor and must follow the same legal guidelines for collection. Consumers in Indiana have the right to request validation of the debt and can dispute inaccuracies. They are also protected from harassment and can specify how and when they wish to be contacted by debt collectors. Violations of these laws can be reported to the Indiana Attorney General's Office or the Consumer Financial Protection Bureau (CFPB), and consumers may have the right to sue for damages if their rights are violated.