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 Louisiana (LA), debt collection is regulated by both state statutes and federal law. The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets national standards for the collection of debts, prohibiting debt collectors from using deceptive, abusive, or unfair practices. This includes harassment, making false statements, and disclosing the debtor's information to third parties. Louisiana law also provides additional protections and may have specific statutes that govern the collection of debts within the state. Creditors in Louisiana can collect debts themselves or hire third-party debt collectors. If a debt is sold, the purchasing entity becomes the new creditor and must adhere to the same collection laws. Common types of debts subject to collection efforts include credit card debt, auto loans, medical debt, student loans, utility bills, and personal loans. Debtors have a legal obligation to repay their debts, but they also have rights under state and federal laws that protect them from illegal debt collection practices.