Debt Collection Glossary

This debt collection glossary covers operational definitions of the regulations, regulators, processes, and terminology that govern enterprise receivables, collections, compliance, and case management. Written from the perspective of the people who run these operations every day.

Last reviewed: May 2026

A

ACH Automated Clearing House
An electronic network that processes batched bank-to-bank transfers in the United States, governed by NACHA rules. Used by creditors for payment collection, direct deposit refunds, and chargeback returns.
Automatic Stay
An injunction imposed by Section 362 of the U.S. Bankruptcy Code that immediately halts most collection actions against a debtor the moment a bankruptcy petition is filed. Creditors who continue collection efforts after notice may be liable for damages.

B

BBB Better Business Bureau
A private non-governmental organization that accepts and routes consumer complaints about businesses. While not a regulator, BBB complaint volume and resolution patterns are tracked by financial-services compliance teams as a leading indicator of CFPB risk. See also our consumer complaint management platform.

C

CFPB Consumer Financial Protection Bureau
The U.S. federal agency established by the Dodd-Frank Act in 2010 that regulates the offering of consumer financial products and services. The CFPB issues rules (including Regulation F), enforces consumer-protection laws, and operates the Consumer Complaint Database.
Chapter 7
A liquidation bankruptcy under the U.S. Bankruptcy Code in which a court-appointed trustee sells non-exempt assets to repay creditors. Most unsecured debts are discharged. For consumer creditors, Chapter 7 typically results in minimal recovery on unsecured accounts. Filing data is publicly accessible via PACER.
Chapter 11
A reorganization bankruptcy under the U.S. Bankruptcy Code, typically used by businesses to restructure debt while continuing operations. Plan confirmation requires creditor classes to vote on the proposed repayment plan.
Chapter 13
A wage-earner bankruptcy under the U.S. Bankruptcy Code that allows individuals with regular income to repay all or part of their debts over a three-to-five-year plan. Creditors holding allowed claims receive distributions per the confirmed plan. See our bankruptcy case management platform.
Charge-off
An accounting designation under which a creditor recognizes a delinquent debt as uncollectible for financial-reporting purposes, typically after 180 days delinquency for unsecured consumer debt under federal banking guidelines. Charge-off does not extinguish the legal obligation to repay.
Chargeback
A reversal of a card or ACH transaction initiated by the cardholder's bank, typically under Regulation E (for debit) or the Fair Credit Billing Act and card-network rules (for credit). Chargebacks are governed by strict regulatory clocks. See dispute management.
CMS Compliance Management System
An institutional framework of policies, procedures, controls, monitoring, and corrective action that a regulated entity uses to manage consumer-protection compliance risk. The CFPB expects supervised entities to maintain a documented, board-approved CMS. See the CFPB Supervision and Examination Manual.
CRA Consumer Reporting Agency
Defined under Section 603(p) of the FCRA, a CRA is an entity that assembles or evaluates consumer credit information for furnishing reports to third parties. Includes nationwide CRAs (Experian, TransUnion, Equifax, Innovis) and nationwide specialty CRAs.

F

FCBA Fair Credit Billing Act
A 1974 amendment to the Truth in Lending Act (15 U.S.C. §1666) that establishes consumer rights and procedures for disputing billing errors on open-end credit accounts (credit cards). Creditors must acknowledge a dispute within 30 days and resolve it within two billing cycles.
FCRA Fair Credit Reporting Act
The federal law (15 U.S.C. §1681) that governs the collection, use, and accuracy of consumer credit information. Imposes duties on furnishers, consumer reporting agencies, and users of consumer reports, including dispute investigation duties under Section 623.
FDCPA Fair Debt Collection Practices Act
The federal law (15 U.S.C. §1692) enacted in 1977 that prohibits abusive, deceptive, or unfair debt-collection practices by third-party debt collectors. Modernized in 2021 by the CFPB's Regulation F. The FDCPA does not directly govern first-party creditors collecting their own debts, though many creditors adopt FDCPA standards as best practice.
FDIC Federal Deposit Insurance Corporation
The U.S. federal agency that insures deposits at U.S. banks and supervises state-chartered banks that are not members of the Federal Reserve System. Issues consumer-compliance examination guidance relevant to bank-owned receivables operations.
FTC Federal Trade Commission
The U.S. federal agency that enforces civil antitrust and consumer-protection laws, including the FTC Act's prohibition on unfair or deceptive acts or practices. Historically shared FDCPA enforcement with the CFPB.

G

Garnishment
A court-ordered legal process by which a judgment creditor collects on a debt by directing a third party (typically an employer or bank) to withhold funds owed to the debtor and remit them to the creditor. Federal (under the Consumer Credit Protection Act) and state law cap garnishment amounts to protect minimum income.
GLBA Gramm-Leach-Bliley Act
The 1999 federal financial-modernization law that imposes privacy and safeguard obligations on financial institutions. Governs the handling of nonpublic personal information across the receivables lifecycle, including third-party servicing relationships.

K

KPI Key Performance Indicator
A measurable value used to track operational performance against a defined target. In collections, common KPIs include right-party contact rate, resolution rate, cost per dollar recovered, regulatory-clock SLA compliance, and complaint-per-thousand-accounts. See our breakdown of collection agency KPIs every vendor manager should track.

N

NCUA National Credit Union Administration
The U.S. federal agency that charters and supervises federal credit unions and insures deposits at federally insured credit unions. Publishes examination guidance for credit-union collection and member-complaint programs.

O

OCC Office of the Comptroller of the Currency
An independent bureau of the U.S. Treasury that charters, regulates, and supervises national banks and federal savings associations. Issues bulletins on third-party risk management, consumer compliance, and operational risk that govern bank-owned receivables operations.

P

PACER Public Access to Court Electronic Records
The U.S. federal judiciary's online service providing electronic access to case and docket information from federal appellate, district, and bankruptcy courts. Creditors and their case-management platforms use PACER for bankruptcy filing detection, docket monitoring, and proof-of-claim filing.
Probate
The court-supervised legal process of administering a deceased person's estate, validating any will, identifying assets, paying creditors, and distributing remaining property to heirs. Probate is governed by state law and varies significantly across all 50 states. Creditors with claims must typically file within a statutory window after notice. See our probate portfolio management platform.
Proof of Claim
A written statement filed by a creditor in a bankruptcy case setting forth the basis and amount of the creditor's claim against the debtor (Bankruptcy Rule 3001). Required for unsecured creditors to receive distribution from the bankruptcy estate. Bar dates vary by chapter and case.

R

Reg E Regulation E
The Federal Reserve Board regulation (12 C.F.R. §1005) implementing the Electronic Fund Transfer Act. Governs consumer rights and creditor duties for electronic transfers, including the strict 10-day provisional credit timeline and 45-day investigation window for unauthorized-transaction disputes.
Reg F Regulation F
The CFPB regulation (12 C.F.R. §1006) that modernizes and operationalizes the FDCPA. Effective November 30, 2021. Establishes call-frequency presumptions (the "7-7-7" rule), validation notice requirements, electronic communication standards, and prohibitions on furnishing time-barred debt to consumer reporting agencies.
Reg Z Regulation Z
The Federal Reserve Board regulation (12 C.F.R. §1026) implementing the Truth in Lending Act. Governs consumer credit disclosures, billing-error procedures (in conjunction with the FCBA), and rules on credit-card practices including ability-to-pay assessments.
Replevin
A civil legal action by which a secured creditor recovers possession of personal-property collateral (typically a vehicle or equipment) when the borrower has defaulted on a secured loan or lease. State-by-state procedures, including whether self-help repossession is permitted, vary significantly. See our replevin case management platform.

S

SCRA Servicemembers Civil Relief Act
The federal law (50 U.S.C. §3901 et seq.) providing financial-protection rights to active-duty U.S. military servicemembers, including a 6% interest-rate cap on pre-service obligations, restrictions on default judgments, and stay-of-proceedings rights. Creditors must screen accounts against the DMDC database before adverse action.
Statute of Limitations
A state-law deadline beyond which a creditor can no longer file a civil lawsuit to collect a debt. State periods range from 3 to 15 years and vary by debt type. Under Reg F, furnishing time-barred debt to a consumer reporting agency is prohibited, and certain collection communications about time-barred debt require additional disclosures.

T

TCPA Telephone Consumer Protection Act
The federal law (47 U.S.C. §227) governing telemarketing and automated telephone communications. Restricts the use of autodialers, prerecorded calls, and SMS to consumer mobile numbers without prior express consent. Class-action exposure under the TCPA is significant; statutory damages range from $500 to $1,500 per violation.

U

UDAAP Unfair, Deceptive, or Abusive Acts or Practices
A consumer-protection standard authorized for CFPB enforcement under Section 1031 of the Dodd-Frank Act. "Abusive" extends beyond the FTC Act's UDAP standard and reaches practices that materially interfere with a consumer's ability to understand a financial product or take unreasonable advantage of consumer characteristics.