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 Maryland, debt collection is regulated by both state statutes and federal law, including the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from using deceptive, abusive, or unfair practices to collect debts from consumers. This includes protection against harassment, false statements, and unfair practices like threatening legal action that is not intended or not permitted. Maryland also has its own set of laws that govern debt collection practices within the state. For example, the Maryland Consumer Debt Collection Act (MCDCA) provides similar protections to consumers, prohibiting collectors from claiming, attempting, or threatening to enforce a right with knowledge that the right does not exist. Additionally, Maryland law limits the amount of time during which a creditor can sue for a debt, known as the statute of limitations, which varies depending on the type of debt. Creditors and third-party debt collectors must adhere to these regulations when attempting to collect various types of debts, such as credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. If a debt collector violates these laws, consumers may have the right to seek legal recourse, which can include filing a complaint with the Consumer Protection Division of the Maryland Attorney General's Office or pursuing a private lawsuit.