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 York, debt collection is regulated by both state and federal laws. The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets national standards for the collection of debts, prohibiting deceptive, abusive, or unfair debt collection practices. It applies to third-party debt collectors who are collecting on behalf of another creditor. New York State has its own set of laws that complement the FDCPA, including the New York State Debt Collection Procedures Law and the New York City Administrative Code (for debts collected in New York City), which provide additional protections to consumers. These laws cover various types of debts such as credit card debt, auto loans, medical debt, student loans, utility bills, and personal loans. They ensure that debt collectors provide debtors with certain information about the debt and prohibit harassment, threats, and other unfair practices. If a debt is sold to another entity, that entity becomes the new creditor and must also comply with these regulations. Consumers in New York who are subject to debt collection efforts have rights and can seek legal recourse if they believe a debt collector has violated the law.