What is the difference between a debt collector and a creditor?

A debt collector and a creditor are two different roles in the debt collection process. A creditor is the person or institution that extends a loan to a consumer. This could be a bank, a finance company, a credit card company, or another type of lender. They have the right to ask for payment of the loan back. A debt collector is different from a creditor, in that a debt collector does not lend money. Instead, they are hired by a creditor to collect a debt from a consumer. Debt collectors are usually third-party companies and their main job is to contact debtors, negotiate repayment plans, and collect payments from them. A debt collector does not have the same rights as a creditor when it comes to collecting debts. It is important to understand the rights of both parties if you find yourself in a situation where debt collection is involved in New Hampshire. The Consumer Debt Defense Law in New Hampshire outlines the rights consumers have when it comes to debt collectors. For example, debt collectors must provide debtors with a written notice of their rights under the law, they must cease communication with debtors if requested, and they must refrain from being abusive, oppressive or deceptive with debtors. Both creditors and debt collectors must abide by this law.

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What is the difference between a debt collector and a creditor?

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