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 Wisconsin, debt collection is regulated by both state statutes and federal law. The Wisconsin Consumer Act (Wis. Stat. §§ 421-427) governs transactions for personal, family, or household purposes and includes provisions related to debt collection practices. This state law complements the federal Fair Debt Collection Practices Act (FDCPA), which sets nationwide standards for the treatment of debtors by third-party debt collectors. The FDCPA prohibits debt collectors from using deceptive, abusive, or unfair practices to collect debts, including harassment, false statements, and disclosing debt information to unauthorized parties. Common types of debts subject to collection efforts in Wisconsin include credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. Creditors in Wisconsin may attempt to collect debts themselves or hire third-party debt collectors. Additionally, creditors may sell debts to other entities, which then become the new creditors and may continue collection efforts. Debtors have rights under both state and federal laws, and if those rights are violated, they may have legal recourse against the debt collectors.