Debt Collector

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DEFINITION of 'Debt Collector'

A company or agency that is in the business of recovering money that is owed on delinquent accounts. Many debt collectors are hired by companies to which money is owed by debtors, operating for a fee or for a percentage of the total amount collected. Some debt collectors are debt buyers; these companies purchase debt at a fraction of its face value and then attempt to recover the full amount of the debt.

INVESTOPEDIA EXPLAINS 'Debt Collector'

Debt collectors are monitored by the Federal Trade Commission (FTC), which enforces the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from using abusive, unfair or deceptive practices during the debt collection process. For instance, debt collectors are not allowed to contact debtors before 8:00 AM or after 9:00 PM, nor can they falsely claim that a debtor will be arrested if he or she does not pay.

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RELATED FAQS
  1. What's the average salary of a bill collector?

    According to the U.S. Bureau of Labor Statistics, the average salary of a bill or debt collector in the United States is ... Read Full Answer >>
  2. Are debt collectors allowed to call me at work?

    According to the Federal Trade Commission, a debt collector can contact a debtor at work unless the debtor specifically tells ... Read Full Answer >>
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