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 Maine (ME), debt collection is regulated by both state statutes and federal law. The federal Fair Debt Collection Practices Act (FDCPA) sets the standard nationwide by prohibiting debt collectors from using deceptive, abusive, or unfair practices to collect debts. This includes specific rules on when and how collectors can contact debtors, what they must disclose, and how they must conduct themselves. In Maine, the state's Fair Debt Collection Practices Act mirrors and sometimes expands upon the protections of the FDCPA, offering additional safeguards for consumers. For example, Maine law requires debt collectors to be licensed and provides a state-level mechanism for addressing violations. Debts commonly involved in collection efforts include credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. If a debt is sold to another entity, that entity becomes the new creditor and is subject to the same collection laws as the original creditor. It's important for consumers in Maine to understand their rights under both state and federal law when it comes to debt collection, and to seek the advice of an attorney if they believe those rights have been violated.