A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- CollectionsThe process of a creditor or a hired agency pursuing an unpaid debt, which appears as a negative mark on your credit report.
- Charge-OffWhen a lender writes off a debt as unlikely to be repaid, usually after months of missed payments, while you still owe it.
- Debt ValidationYour right to request written proof that a debt is yours and accurate before a collector can continue pursuing it.
- Debt SettlementNegotiating with a creditor to accept less than the full amount owed to resolve a debt, often for accounts already in default.
- Fair Debt Collection Practices ActA federal law that limits how debt collectors can contact you and bars abusive, deceptive, or unfair collection tactics.
More in Credit & Debt
Plain-English education — not personalized legal, tax, or investment advice.