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Glossary: Debt Collection and Credit Report Terms

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Plain-English definitions of the terms that show up in collection letters, credit reports, and court papers. Each links to the guide that explains it in depth.

A

Affirmative defense
A reason you raise in your written answer to a lawsuit that, if proven, defeats the claim even if some of what the other side says is true. The statute of limitations is a common one in debt cases. In most courts you must raise it yourself or risk losing it. Read more →
Answer
Your written response to a lawsuit, filed with the court by the deadline on your summons. It admits, denies, or says you lack enough information about each claim, and lists your defenses. Read more →
Authorized user
Someone added to another person's credit card account. If the issuer reports authorized users, the account's history can appear on the authorized user's credit report — good or bad. Read more →

B

Bona fide error defense
A defense a debt collector can raise in an FDCPA lawsuit by showing the violation was an unintentional mistake that happened despite reasonable procedures meant to prevent it (15 U.S.C. § 1692k(c)). Read more →

C

Cease and desist letter
A written request telling a debt collector to stop communicating with you, or stating that you refuse to pay. Once received, the collector must stop contacting you about that debt except for narrow purposes (15 U.S.C. § 1692c(c)). It does not erase the debt. Read more →
Charge-off
An accounting step where the original creditor writes off an unpaid account as a loss, usually around 180 days past due for credit cards. You still legally owe the debt. Read more →
Collection account
A credit report entry from a collection agency or debt buyer that is collecting a debt. It is separate from the original creditor's account entry. Read more →
Consumer debt
Money owed for personal, family, or household purposes. The FDCPA only covers consumer debts, not business debts (15 U.S.C. § 1692a(5)). Read more →
Consumer reporting agency (credit bureau)
A company that collects and sells credit information. The three nationwide bureaus are Equifax, Experian, and TransUnion. Read more →

D

Date of first delinquency (DOFD)
The date you first fell behind on the original account and never caught back up. It controls how long a collection or charge-off can stay on your credit report. Selling the debt or paying it does not change this date. Read more →
Debt buyer
A company that buys unpaid debts, often for a small fraction of the balance, and tries to collect them for itself. Whether a debt buyer is covered by the FDCPA can depend on how its business operates. Read more →
Debt collector
Under the FDCPA, a business whose principal purpose is collecting debts, or anyone who regularly collects debts owed to someone else. Original creditors collecting their own debts in their own name generally aren't included (15 U.S.C. § 1692a(6)). Read more →
Default judgment
A court ruling against you because you didn't respond to a lawsuit by the deadline. The other side wins without having to prove its case. Read more →
Discovery
The stage of a lawsuit where each side can request documents and information from the other, such as the original agreement, payment history, and proof of ownership of the debt. Read more →
Dispute (credit report)
Your request, under FCRA § 611, that a credit bureau investigate information you believe is inaccurate or incomplete. Information that's wrong or can't be verified must be corrected or deleted. Read more →

E

e-OSCAR
The automated system credit bureaus and furnishers use to exchange most disputes. Disputes are often reduced to short codes, which is why specific, documented disputes matter. Read more →

F

FCRA
The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), the federal law governing credit bureaus, the companies that report to them, and who can see your report. Read more →
FDCPA
The Fair Debt Collection Practices Act (15 U.S.C. § 1692 et seq.), the 1977 federal law that limits how third-party debt collectors can collect consumer debts. Read more →
Furnisher
A company that reports information about you to a credit bureau, such as a lender or a collection agency. Furnishers have a legal duty to report accurately and to investigate disputes. Read more →

G

Garnishment
A court-ordered process that takes part of your wages (wage garnishment) or money in your bank account (bank levy) to pay a judgment. For ordinary consumer debts, a creditor generally needs a court judgment first. Read more →
Goodwill letter
A letter asking a creditor, as a courtesy, to remove accurate negative reporting. The creditor has no obligation to agree. Read more →

I

Itemization date
A reference date a debt collector picks for its validation notice under Regulation F. The notice must show the amount owed on that date and itemize interest, fees, payments, and credits since then. Read more →

L

Limited-content message
A voicemail format defined in Regulation F that includes only a name, a callback request and number, and a business name that doesn't reveal debt collection, so others who hear it don't learn about your debt. Read more →

M

Method of verification
A description of how a credit bureau verified disputed information, including the name and address of the company it contacted. You can request it after a dispute, and the bureau must respond within 15 days (15 U.S.C. § 1681i(a)(7)). Read more →

O

Original creditor
The company that originally lent you money or provided the service, such as a bank, card issuer, or hospital. Read more →

P

Pay-for-delete
A negotiated agreement where you pay all or part of a debt and the collector agrees to request deletion of the account from your credit reports. Legal to ask for; no one is required to agree. Read more →

R

Re-aging
Reporting a date of first delinquency that's later than the real one, which keeps a negative item on a credit report longer than the law allows. It can be disputed. Read more →
Regulation F
The CFPB's debt collection rule (12 CFR Part 1006), effective November 30, 2021. It fills in details of the FDCPA, including call-frequency limits, validation notice content, and rules for texts, emails, and social media. Read more →

S

Statute of limitations
A state-law deadline for filing a lawsuit to collect a debt. Length varies by state and debt type. It's separate from how long a debt can appear on your credit report. Read more →
Statutory damages
Money a court can award for an FDCPA violation even without proof of financial loss — up to $1,000 in an individual case, generally per lawsuit rather than per violation (15 U.S.C. § 1692k(a)). Read more →

T

Time-barred debt
A debt past the state's statute of limitations. Under Regulation F, debt collectors can't sue or threaten to sue over it (12 CFR § 1006.26(b)). Sometimes called zombie debt. Read more →

V

Validation notice
The written notice a debt collector must send with or within five days of its first communication, stating the debt amount, the creditor, your dispute rights, and the date your dispute window ends (15 U.S.C. § 1692g(a); 12 CFR § 1006.34). Read more →
Validation period
The roughly 30-day window after you receive a validation notice. A written dispute within it requires the collector to stop collecting until it mails you verification. Read more →

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