Debt Collection Definition

Debt collection refers to any of a variety of legal means used by creditors to recoup monies loaned to debtors. In the most basic form, debt collection consists of receiving and processing periodic and routine payments to service debt. If a debtor fails to remit such payments, creditors use various other legal (though often highly unpleasant) means to recoup loaned funds. Harassing and frequent telephone calls, letters, personal visits, and ultimately lawsuits can be used.