Debt Collector
A person or company hired to collect debts owed to creditors. Third-party debt collectors are regulated by the Fair Debt Collection Practices Act (FDCPA), which prohibits abusive, unfair, or deceptive practices in debt collection.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Collections
When a creditor turns an overdue debt over to a collection agency after the borrower fails to pay. Collection accounts are reported to credit bureaus and remain for seven years from the original delinquency date. Paying a collection removes your legal obligation but typically doesn't remove the account from your report.
- Fair Debt Collection Practices Act (FDCPA)
US federal law that regulates how third-party debt collectors can contact you and collect debts. Prohibits harassment, false statements, and unfair practices. Gives you the right to request debt validation and cease communication from collectors.
Frequently Asked Questions About Debt Collector
What does Debt Collector mean?
A person or company hired to collect debts owed to creditors. Third-party debt collectors are regulated by the Fair Debt Collection Practices Act (FDCPA), which prohibits abusive, unfair, or deceptive practices in debt collection.
Is Debt Collector important for my FICO® score?
Understanding Debt Collector helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.