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 Pennsylvania (PA), debt collection is regulated by both state statutes and federal law, including the Fair Debt Collection Practices Act (FDCPA). The FDCPA is a federal law that sets the standard for how debt collectors can behave when collecting certain types of debt, including credit card debt, auto loans, medical bills, student loans, and other personal debts. It prohibits deceptive, abusive, or unfair practices. For instance, collectors cannot harass debtors, make false statements, or use unfair practices in attempting to collect a debt. Pennsylvania also has its own set of laws that may provide additional protections to consumers. For example, the Pennsylvania Fair Credit Extension Uniformity Act mirrors the FDCPA and applies these standards to creditors collecting their own debts. Additionally, the Pennsylvania Consumer Discount Company Act regulates the interest rates and fees that can be charged on certain types of loans. Debtors in Pennsylvania should be aware that while they have an obligation to repay their debts, they also have rights under state and federal law that protect them from improper debt collection practices.