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 Oregon, debt collection is regulated by both state statutes and federal law, including the Fair Debt Collection Practices Act (FDCPA). The FDCPA sets nationwide standards for debt collection practices, prohibiting deceptive, unfair, or abusive tactics. Oregon has its own set of laws that complement federal regulations, providing additional protections to consumers. These laws govern how debt collectors can communicate with debtors, the appropriate times to contact them, and the type of information that must be provided to the debtor. For example, debt collectors must inform debtors of the amount of the debt, the name of the creditor, and provide a statement that the debtor has the right to dispute the debt. If a debt is sold to another entity, the new entity becomes the creditor and must adhere to the same collection laws. Common types of debts subject to collection efforts include credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. Debtors in Oregon who believe a debt collector has violated state or federal law may have the right to seek legal recourse and should consider consulting with an attorney to understand their rights and potential remedies.