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 Montana (MT), debt collection is regulated by both state statutes and federal law. The federal Fair Debt Collection Practices Act (FDCPA) provides a framework that protects consumers from abusive, deceptive, and unfair debt collection practices. Under the FDCPA, debt collectors are prohibited from engaging in harassment, making false statements, and using unfair practices in their collection efforts. This applies to various types of debts including credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. In Montana, the collection of debts is also subject to state laws which may offer additional protections. For example, Montana has statutes that govern the actions of collection agencies within the state, and these laws work in conjunction with the FDCPA to ensure fair treatment of debtors. Debtors in Montana should be aware of their rights under both federal and state law, and if they believe a debt collector has violated these laws, they may have the right to seek legal recourse. An attorney specializing in consumer debt issues can provide guidance specific to individual cases.