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 New Jersey, 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. New Jersey also has its own set of laws that complement the federal regulations, providing additional protections to consumers. For example, the New Jersey Consumer Fraud Act prohibits various deceptive practices in the collection of consumer debts. Creditors in New Jersey can hire third-party debt collectors or sell the debt to another entity, which then becomes the creditor. Common types of debts subject to collection efforts include credit card debt, auto loans, medical debt, student loans, utility bills, and personal loans. Consumers in New Jersey who are facing debt collection efforts have rights under these laws, and if those rights are violated, they may have legal recourse. It is advisable for individuals dealing with debt collection to consult with an attorney to understand their rights and obligations under both state and federal law.