Collection Agencies

Collection agencies are companies that specialize in recovering unpaid debts on behalf of creditors, such as banks or service providers. When a debtor fails to pay, the creditor may hire a collection agency to pursue the debt. These agencies contact the debtor to negotiate payment plans, settlements, or to recover the full amount owed. They operate under regulations to ensure fair practices while collecting debts. Ultimately, their goal is to help creditors recover money owed to them while providing options for debtors to address their financial obligations.