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 Vermont, 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 the conduct of third-party debt collectors, prohibiting deceptive, unfair, or abusive practices. Vermont also has its own laws that provide additional protections to consumers. These laws apply to various types of debts, including credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. Creditors may collect debts themselves or hire third-party collectors, and they may also sell debts to other entities. When a debt is sold, the purchasing entity becomes the new creditor. It's important for consumers to know that while they are obligated to repay legitimate debts, they have rights under both federal and state law that protect them from harassment and other improper debt collection practices. An attorney can provide specific guidance on how these laws apply to individual situations in Vermont.