The debt collection glossary
Clear definitions, worked examples, and benchmarks for the laws, metrics, and practices that decide how much you recover and how much risk you carry. Written by the team that builds the HL Hunt platform.
FDCPA
The Fair Debt Collection Practices Act, the 1977 federal law that governs how third-party debt collectors may contact and treat consumers.
Learn moreRegulation F
The CFPB rule implementing the FDCPA, effective November 2021, with call frequency limits, electronic communication rules, and a model validation notice.
Learn moreTCPA
The Telephone Consumer Protection Act, which requires consent for autodialed or prerecorded calls and texts to cell phones.
Learn moreValidation notice
The written disclosure a collector must send within five days of first contact, itemizing the debt and informing the consumer of their dispute rights.
Learn moreCharge-off
The accounting step where a creditor writes off a delinquent debt as a loss, typically at 120 or 180 days past due. The debt is still owed.
Learn moreFirst-party vs third-party collection
First-party collection is a creditor collecting its own debts; third-party is a collector acting for someone else. Different laws apply to each.
Learn moreContingency fee
The percentage of recovered dollars a collection agency keeps as its fee, typically 25% to 50% depending on debt age and type.
Learn moreSkip tracing
Locating a debtor whose contact information is outdated or missing using data sources such as credit headers, public records, and phone carriers.
Learn moreCollectability score
A predictive score estimating the likelihood and expected amount of recovery on an account, used to prioritize collection effort.
Learn morePayment plan
An agreement allowing a debtor to pay a balance in scheduled installments, often the difference between recovery and write-off.
Learn moreRight-party contact
A communication in which the collector actually reaches the person who owes the debt, as opposed to voicemail, wrong numbers, or third parties.
Learn moreCease and desist
A consumer's request that a collector stop communicating with them, which the FDCPA requires collectors to honor with limited exceptions.
Learn moreStatute of limitations on debt
The time period, set by state law, within which a creditor or collector may sue to collect a debt. After it runs, the debt is time-barred.
Learn moreMetro 2
The standard data format for reporting consumer account information to the credit bureaus, maintained by the Consumer Data Industry Association.
Learn moreLimited-content message
A voicemail defined by Regulation F that a collector may leave without disclosing the debt, containing only specified information.
Learn moreRecovery rate
The percentage of placed or delinquent balances actually collected over a period, the core measure of collections performance.
Learn more
Start recovering more today.
Create a free account, upload your first accounts, and compliant AI outreach begins within the hour. Pay commission only on what you recover.