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 Massachusetts, 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 deceptive, unfair, or abusive practices by debt collectors. This applies to the collection of various types of debts, including credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. In addition to the FDCPA, Massachusetts has its own set of laws that govern debt collection practices within the state. The Massachusetts Attorney General's regulations (940 CMR 7.00) provide further protections for consumers, including restrictions on when and how often a debt collector can contact a debtor, prohibitions on certain types of harassment or abuse, and requirements for debt validation. These regulations apply to both original creditors and third-party debt collectors. If a debt is sold, the purchaser of the debt becomes the new creditor and is subject to the same collection laws and regulations. Debtors in Massachusetts have the right to request validation of the debt and may dispute any inaccuracies. If a debt collector violates state or federal debt collection laws, consumers may have the right to seek legal recourse.