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 Kentucky, 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. Kentucky does not have a specific state statute that mirrors the FDCPA, but it does have laws that regulate consumer transactions and protect consumers from fraudulent or unfair practices, which can apply to debt collection. Debt collectors in Kentucky must comply with the FDCPA, which means they cannot harass or threaten debtors, must provide validation of the debt if requested, and are restricted in the times they can contact debtors, among other provisions. Additionally, if a debt is sold to a third party, the new creditor must adhere to the same regulations when attempting to collect the debt. It's important for consumers in Kentucky to understand their rights under the FDCPA and to report any violations to the appropriate authorities, such as the Federal Trade Commission or the Kentucky Attorney General's Office.