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 North Dakota, debt collection is regulated by both state statutes and federal law. The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets the standard for how debt collectors can operate, prohibiting deceptive, abusive, or unfair practices. Under the FDCPA, collectors are restricted in their methods of communication, prohibited from harassing or threatening debtors, and are required to validate the debt upon request. North Dakota also has state laws that may provide additional protections. For example, the state outlines the statute of limitations for various types of debt, after which a creditor cannot sue to collect the debt. This period varies depending on the type of debt but typically ranges from 3 to 6 years. Credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans are all subject to these regulations. If a debt is sold to a third party, the new entity becomes the creditor and must adhere to the same legal standards for collection. Debtors in North Dakota who believe their rights have been violated can seek legal recourse and should consider consulting with an attorney to understand their rights and options under both state and federal law.