collection agency
A collection agency is a company that specializes in recovering unpaid debts on behalf of creditors, such as banks or businesses. When individuals or companies fail to pay their bills, the original creditor may hire a collection agency to pursue the debt. The agency attempts to contact the debtor through phone calls, letters, or negotiations to collect the amount owed. If successful, the agency typically takes a percentage of the recovered funds as payment. Collection agencies must follow legal guidelines to ensure fair treatment of debtors and to protect their rights.
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A collection agency is a company that specializes in recovering unpaid debts on behalf of creditors. When a customer fails to pay their bills, such as credit card debt or loans, the creditor may hire a collection agency to pursue the debt. The agency contacts the debtor to negotiate repayment options or settlements. They may charge the creditor a fee based on the amount collected. While collection agencies aim to retrieve funds, their methods can sometimes be aggressive, and they must adhere to laws regulating debt collection practices to protect consumers' rights.