collections agency

A collections agency is a company that specializes in recovering unpaid debts on behalf of businesses or lenders. When someone borrows money or makes a purchase on credit and fails to pay back on time, the original creditor may hire a collections agency to retrieve the owed funds. The agency contacts the debtor, sometimes through calls, letters, or emails, to arrange payment. Their goal is to recover as much money as possible for their client, often following strict legal guidelines to ensure fair and ethical practices during the process.