NH Law About ...: Consumer Debt Collection Practices: Introduction ...

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Introduction ...

This guide focuses on consumer debt collection practices. It includes resources that will help both debtors and creditors/collectors including links to the law, resources written by debt collection attorneys, and sources for sample letters.

If you have a problem with a debt collection agency in New Hampshire, contact the New Hampshire Consumer Protection & Antitrust Bureau at 603-671-3641.

If you have a problem with an out-of-state debt collection agency, contact the Federal Trade Commission at 1-877-FTC-HELP or 1 877-382-4357 (toll free)

Types of Debt

Bankrate. What is the Difference Between Secured and Unsecured Debt?
"Secured and unsecured debts have many similarities, but one major difference is whether collateral is required. As the name implies, secured debt requires collateral to back the loan, but this isn’t the case for unsecured debt."
Wolters Kluwer. Different Types of Liens Provide Creditors With Different Rights
"Creditors come in two basic types: secured and unsecured. Although the amount of the debt may be the same, the remedies available to the creditor are very different. Secured creditors have a claim against a specific asset, whereas unsecured creditors do not."
Investopedia. What Types of Liens Are Seen as Good and Which Are Bad for My Credit?
"Consensual liens are considered good liens and do not impact your credit. These include mortgages, vehicles, and business assets. Statutory liens are considered the bad kind and can will [sic] remain listed on your credit for seven years. These include mechanic and tax liens. Judgment liens are the most severe kind of lien and can remain listed on your credit for up to seven years. These occur when a court grants a financial interest in your assets to a creditor."

Collector or Creditor?

You will sometimes see the terms "creditor" and "debt collector" used interchangeably but they aren't the same under the law and it's important to understand which is which to know what a creditor or debt collector can or cannot do.

CFPB. Debt Collection Key Terms
"Debt collectors include collection agencies or lawyers who collect debts as part of their business. There are also companies that buy past-due debts from creditors or other businesses and then try to collect them. These debt collectors are also called debt collection agencies, debt collection companies, or debt buyers. ... Generally speaking, the original creditor is the company that gave you the loan or credit. An original creditor may attempt to collect a past due credit account itself, or it may hire a debt collector. The original creditor also may sell your credit account to a debt collector."
Justia. Consumer Debt Collection
"An individual, business, or government entity that is attempting to collect a debt owed directly to it is known as a “first-party debt collector.” It typically has a direct contractual or legal relationship to the debtor. ... Businesses that collect debts owed to another individual, business, or government entity are known as “third-party debt collectors.” They typically have a contract with the creditor that lets them keep a percentage of the amounts collected."
Federal Trade Commission. Think your company’s not covered by the FDCPA? You may want to think again.
"When it comes to the Fair Debt Collection Practices Act, many companies think they know who they are. If they’re third-party debt collectors, they’re covered by the FDCPA. If they’re creditors collecting their own debts, they aren’t. ... Some creditors and others may not realize that certain courses of conduct can put them squarely within the jurisdiction of the FDCPA."

Please remember that this guide is for information purposes only and is not comprehensive.
It is intended as a starting point for research, to illustrate the various sources of the law, and to provide guidance in their use.
NH Law About ... is not a substitute for the services of an attorney.