collections agencies

Collections agencies are companies that specialize in recovering unpaid debts on behalf of creditors, such as banks or service providers. When a customer fails to pay their bills, the creditor may sell the debt to a collections agency, which then takes on the responsibility of contacting the debtor and trying to collect the money owed. These agencies often use various strategies to negotiate payments, but they must comply with laws that protect consumers from harassment. If successful, they receive a portion of the collected funds as payment for their services.