Definition
A person or company that collects debts owed to someone else; federal law limits how and when they can contact you.
What it means
Third-party debt collectors are covered by the federal Fair Debt Collection Practices Act and the CFPB's Regulation F. A collector must send you validation information about the debt, including the amount and the original creditor, and you generally have about 30 days after receiving it to dispute the debt in writing. Collectors may not call before 8 a.m. or after 9 p.m. your local time, use threats or abusive language, or lie about the amount owed. Calling more than seven times in seven days about a debt is presumed to be harassment. You can ask a collector in writing to stop contacting you, although the debt may still be owed. Debts past the statute of limitations are called time-barred; collectors may not sue or threaten to sue over them.
Example
A collector says you owe $2,400 on an old phone bill you do not recognize. Sending a written dispute within the 30-day window generally requires the collector to stop until it gives you verification.
Illustrative numbers only. Your situation will differ.